Ethereum high-risk Dapp category volume has increased more than 2800% in the last one year: DappRadar reports
The growth in high-risk decentralized apps has been astronomical over the last year, particularly on the Ethereum Blockchain. At least that is what data analytics site DappRadar suggests. According to the latest report published by the firm, Ethereum holds 99% of the total transaction volume in the high-risk category in 2020 Q1. Moreover, it also accounts for 63% of total daily activity in this category. Volumes increased by 2,853% year-over-year compared to Q1 2019, and daily activity surged by 948%.
What is a high-risk Dapp?
In an interview with Decrypt, DappRadar Communications Director Jon Jordan explained it well. He said, “The formal definition of being ‘high-risk’ is the one which recognizes that the sort of products you can build on blockchains are very different from centralized gambling apps, indeed uniquely so when it comes to the creation and transference of financial value.” He also added that this category does not always state its risks and rules.
Change in trends
TRON had been the undoubted leader in this space up until Q1 2019, while Ethereum only owned a small; percent. However, the tables have turned in a span of one year, with Ethereum being the clear leader. EOS had been doing considerably well, but even it has lost the space to Ethereum in the last two quarters.
DappRadar’s data further suggests that the high-risk dapps burn out pretty quickly. Surprisingly, only 14% of the total of 724 listed dapps are currently active. The report further drew a conclusion to the high-risk dapp category trend. It stated, “The long term trends of high-risk dapps are quite simple to observe. A sharp rise, followed by a sharp fall and an inability to retain users over time in most cases.”
However, the fact of the matter is, despite the high-risk tag, the category is booming with incremental volume and users. Jordan, however, commented fraud and missing token pots have continuously raised questions on the legitimacy of dapps.