EOS, the delegated Proof-of-Stake platform, may be losing its edge despite a $4 billion war chest. According to a new report by DappRadar for January, the number of users dropped by a massive 67% from January 2019.
This is startling, and hints of trouble within the platform’s hierarchy that promised so much and yet deliver too little.
1There are some quarters who even complain of a broken dPoS system which couldn’t justify the huge sums of ETH crowd funded in their year-long ICO.
Decline in EOS Startling
It must be noted that within that period, Ethereum and Tron posted decent activity.
For instance, in Ethereum, the daily active unique wallets nearly doubled, rising 82%, while Tron’s rose 33%.
In January, the same trend continued with Ethereum and Tron strengthening their bases while EOS’s declined.
An extract from the report reads:
“There are some surprising numbers when measuring the performance of the three blockchains. Daily active unique wallets for Ethereum have increased by 82%, TRON rose by 33%, while EOS was facing a decrease in daily active users by 61% comparing January 2019 data to January 2020.”
“In January 2020, Ethereum and TRON increased their user bases while EOS had a steady decline.”
More Exchanges Launching in Ethereum
EOS may be ranked higher according to previous China’s Center for Information and Industry Development (CCID) reports but the report also found that Ethereum’s DeFi, and not surprising decentralised marketplaces/exchanges were growing at a steady pace, gleaning from the number of daily active unique wallets.
57% of all Games and Marketplaces activities were from Ethereum, which grew 7% in January.
#EOS project EIDOS is '"killing" the network as ppl are mining the airdrop tokens insanely.
CPU Price up 1740%
REX Borrowed 83% (record high)
DAU of EOS Dapp drop 79%
EOS Dapp txn up 180%
Most users cannot afford CPU to send a txn, driving most Dapps down 60-70% in activities. pic.twitter.com/Obj1hC0EUs
— DappReview (@dapp_review) November 4, 2019
The drop in user activity in EOS could be linked to the EIDOS airdrop that significantly slowed down the network.
But there could be a reprieve for EOS if projects’ plan is anything to go by.
For example, Dexive, a non-custodial, social and digital decentralized exchange, plans to first integrate Ethereum and NEO.
In later stages, it will integrate EOS and Ziliqa. At the moment though, it will launch its token, DXV, on the Ethereum platform.
DeFi and Exchanges Show Great Promise
The growth of exchanges and DeFi apps, uses that are wildly popular in social media, is steadily attracting new users.
In January, the number of DEXs in Ethereum rose 9.7%, outpacing the growth of DeFi.
Exchanges growth could be linked to user’s risk-averseness and the allure of controlling funds advised by risks of losing funds through hacks common in centralized exchanges.
Image Source: DappRadar
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich