More than halfway through a rocky 2018 and user adoption for decentralized applications (dApps) on the Ethereum blockchain look less than stellar. This was supposed to be the year where blockchain technology adoption started to ramp up, so is there a problem with a lack of users on Ethereum network dApps, or is it still too early to judge?
The Launch of Augur
The most anticipated dApp launch of the year to date came and went, with Augur releasing the mainnet of its decentralized prediction market platform. Many had expected speedy adoption for the application, creating a solid use case for the Ethereum blockchain to build off.
User adoption spiked after the initial launch, but many users complained of design feature flaws and problems with the platform, claims which the project leaders acknowledged, but mostly disregarded as short-sighted. Still, with just over 8,500 transactions completed in the trailing 30-days, Augur hasn’t lived up to the hype just yet.
IDEX, the most used dApp
Not surprisingly, the most used dApp on the Ethereum blockchain is one which revolves around the trading of cryptocurrency. IDEX is a decentralized crypto exchange designed to trade ERC-20 tokens via its platform. The exchange touts almost 350,000 active users in the past 30 days transacting the equivalent of 118,000 ether on the platform.
However, a decentralized exchange such as IDEX, where tokens are simply being traded back and forth between investors, does not at all represent the benefits of the Ethereum blockchain, and only aids in the perception that its network is only being utilized by market speculators.
Too soon to judge?
Most market pundits are not surprised by the lack of user adoption in dApps, claiming we are still riding the pre-adoption phase of the industry in which it will take time to develop the adequate technology and applications to entice users on a mass scale.
It isn’t the most positive sign that the biggest uptick in user adoption has come from a crypto trading exchange and a game involving digital cats. Even though there are more use cases for blockchain than one can count, eventually, user-facing applications will have to rise to meet these expectations and serve users or else Ethereum, and other blockchains along with it, will continue to see their market share decline closer to zero.
Dan is a freelance cryptocurrency and blockchain content writer. He has written content for startups, ICOs, financial planners, venture capital firms, and more. Previously he founded an e-commerce company that grew to $1 million in revenue and profitability in less than 3 years. Dan has a degree in Economics and Finance from Bentley University.