Dapp Radar Report: Dapp Industry Overview April 2021

Key metrics for NFT declined, primarily due to a decrease in activity for NBA Top Shot.

April 2021 is certainly exciting for the decentralized applications industry as the decentralized finance (DeFi) ecosystem continues to lead the way and the non-homogenized token (NFT) market is flooded with exciting high-value sales. At the same time, cryptocurrency prices peaked. Bitcoin reached a new all-time high of $64,000 and Ether reached $3,000.

Although the price of ethereum fuel charges dropped at the end of April, it is now the fourth largest blockchain in terms of the number of independent active wallets. Ether has lost its leadership position to three very different competitors. WAX took the top spot thanks to the growing popularity of the Alien Worlds game, which has more active wallets than Ether and Flow combined. Then, of course, there’s the Coin Smartchain (BSC), which was the second most used blockchain in April.

The DeFi ecosystem rose sharply in April. While Ether remains irreplaceable as far as DeFi TVL is concerned, the vast majority of value was driven by price increases in ETH, BTC and other cryptocurrencies. Meanwhile TVL doubled on the Coin Smartchain, which was driven by Venus and PancakeSwap.

Dapp Radar Report: Dapp Industry Overview April 2021

Source: Google Trends

The NFT market saw a decline in transaction volume in April. According to Google Trends, interest declined in the middle of the month. one reason for the decline in NFT interest is the NBA Top Shot and its ongoing subscriber retention issues. Despite this, the industry has seen some high-value sales, with some NFTs selling for more than $5 million. In terms of transaction volume, CryptoPunks took over the lead from NBA Top Shots, which remains the most active dapp in the NFTs space thanks to its independent number of active wallets.

April Summary

April 2021 – Key Takeaways

In April, the blockchain industry grew 158% year-over-year, reaching 1 million daily unique active wallets across all chains.

WAX, BSC and Flow have surpassed Ether in terms of daily unique active wallets. wax captured half of the daily unique active wallets in the blockchain industry.

Ether has generated $70 billion in TVL, maintaining its leadership position in the DeFi space.

Venus has surpassed MakerDAO’s TVL by $200 million.

NFT’s key metrics declined, largely due to a decrease in activity on NBA Top Shot. Transaction volume fell from $217 million to $83 million per month.

Despite the decline in NBA Top Shot activity, Flow still leads the NFT space with over 60,000 daily traders.

WAX is also unmissable with over 18,000 daily NFT traders. the biggest drivers are Alien Worlds, Atomic Market and the newly launched Topps MLB.

Ether’s competitors are still making strides

In April 2021, the blockchain industry grew 158% YoY in terms of independent active wallets. In the past month, the entire blockchain industry had over 1 million active wallets across all blockchains.

Surprisingly, the biggest contributor is the WAX blockchain. This NFT-centric blockchain packs about half of the on-chain activity, equating to over 500,000 separate active wallets. The biggest reason behind this growth is the game Alien Worlds, which relies heavily on yield farming and provides a revenue stream for gamers.

Number of independent active wallets on the protocol, in thousands

Dapp Radar Report: Dapp Industry Overview April 2021

Source: DappRadar

BSC is the second most active blockchain, and its user base increased by 61% in April. Despite Coin’s recently announced major move into the NFT space, the DeFi ecosystem continues to be a huge driver for BSC. deFi dapps still carries 96% of all blockchain activity on BSC. Flow, meanwhile, is the third-ranked blockchain, although 99.9% of its activity is driven by NBA Top Shot.

Despite dropping to #4 in the rankings based on the number of active wallets it has independently, the Ether blockchain remains #1 in terms of total value locked (TVL). On Ether, transaction volume increased from $114 billion to $148 billion, even though that value came primarily from rising token prices. Despite the high price of the fuel fee, we can only conclude that DeFi users on Ether have invested a lot of money and perhaps feel safer locking it down, both of which put the $50 fuel fee in the acceptable range.

Polygon is the most important of the Layer 2 solutions tracked by DappRadar. usage almost quintupled in April, growing from over 4,000 unique active wallets to 20,000. The activity is mainly driven by a combination of several dapps: QuickSwap, Aavegotchi and Aave.

The NEAR protocol has also shown an increase in independent active wallets. The launch of Rainbow Bridge helped connect the NEAR protocol to the ethereum ecosystem. The technology will allow assets to flow between NEAR and Ether, which could be an incentive for developers.

Market capitalization, in billions of dollars

Dapp Radar Report: Dapp Industry Overview April 2021

Data collected by DappRadar from CoinGecko

In terms of market cap, BNB, the native token of the CoinGecko Smartchain, has seen some significant changes. in April, BNB ranked third in terms of market cap.

Polkadot (DOT) is also showing impressive growth and will introduce USDT stablecoin on Polkadot and Kusama. This may help the growth of both chains. Stablecoins have become an important element of the DeFi space and USDT has been the largest stablecoin in the industry so far.

All in all, Layer 1, Layer 2 and sidechain solutions are all gaining traction. Notably, Layer 1 solutions such as BSC, Wax and Flow are leading the way. On the other hand, sidechain solutions such as Polygon are also enjoying impressive growth. Overall, all of this suggests that ethereum will face stiff competition now and in the coming months.

BSC remains very focused on DeFi

Dapp developers on the BSC smartchain remain primarily focused on decentralized finance. Of the 440 dapps on BSC, 320 are part of the DeFi ecosystem. Meanwhile, a large number of new DeFi dapps are being added every week, but most of the activity is concentrated on a few platforms: PancakeSwap, Pancake Bunny, Venus, and ApeSwap, among others.

ApeSwap performed better on several metrics. the number of independent active wallets increased from 4,000 to around 15,000 at the end of April. This resulted in the growth of dapps native token BANANA from $1 to over $10.

Dapp Radar Report: Dapp Industry Overview April 2021

Source: DappRadar

Overall, BSC is very focused on DeFi, but on the other hand, Coin’s recent plans to release its own NFT marketplace means that Ether’s NFT marketplace will face broader competition, in addition to Wax, Polygon and Flow eyeing it.

Polygon’s rapid growth

Polygon is leading the competition in the layer-2 space, and its token price has risen accordingly. As mentioned earlier, in April, there were over 20,000 daily active unique wallets on Polygon. The reasons behind this growth are twofold. First, Polygon is able to offer fast transactions with low transaction costs, providing users with a better experience with less fuel costs. Secondly, the platform has managed to attract major players in the ethereum ecosystem. polygon has not only attracted new products but also their communities, thus contributing to the growth of its on-chain active data.

Dapp Radar Report: Dapp Industry Overview April 2021

Source: DappRadar

The top three dapps are QuickSwap, Avegotchi and Aave, which have more than 12,000, 2,200 and 1,500 active independent wallets, respectively.

Dapp Radar Report: Dapp Industry Overview April 2021

There is no doubt that Polygon has a bright future not only in the DeFi ecosystem, but also in the gaming and NFT space. The network has a rather ambitious plan, such as moving the NFT project to layer-2, which may help more users migrate to Polygon in the near future.

Ethernet: Leading TVL values

Despite increasing competition from layer-1 and layer-2 solutions, Ethernet has reached several important milestones. The total value locked in Ether DeFi dapps exceeds $70 billion. the biggest reason for the TVL growth is the spike in cryptocurrency prices. Some believe the price increase was triggered by an upcoming network update and increased interest from institutional investors. The blockchain released a beta version of a network update called Steklo, which aims to try to reduce costs by increasing transaction speed and efficiency.

The total value locked in on the Coin Smartchain exceeds $40 billion. While the BSC TVL is still far below the Ether blockchain, its TVL growth rate is three times higher than that of the Ether blockchain. in April, the BSC TVL grew by 126%, while the Ether TVL grew by only 27%.

Dapp Radar Report: Dapp Industry Overview April 2021

Source: DappRadar and Defistation.io

Looking at the highest ranked dapps on the Coin Smartchain, Venus surpasses even the top ranked DeFi dapp MakerDAO on Ether. although the difference is small, it shows the true potential of BSC DeFi. Overall, combining the trend of scaling Ether dapps to Layer 1 and Layer 2 solutions with BSC’s current growth rate, it may not take too long for BSC to gain the lead in TVL. There are even claims that the future of DeFi does not depend on one or two blockchains.

Increased competition in the NFT market

There were a number of large funding announcements this April, the largest of which came from Dapper Labs, the team behind NBA Top Shot and the Flow blockchain. They raised $305 million. To enter the polka ecosystem, Enjin raised $18.9 million. SuperRare attracted $9 million in its Series A round. Clearly investors are convinced that the current boom around NFTs and digital collectibles is just beginning.

NFTs: Number of users trading in each protocol

Dapp Radar Report: Dapp Industry Overview April 2021

Source: DappRadar

Three blockchains stand out in terms of NFTs and number of users trading them: Flow, Wax and Ether. Flow currently ranks #1 in the NFT market with 60,000 active wallets trading NFTs daily. the latest round of investment from Dapper Labs, the partnership with Genies, and the success of NBA Top Shot make Flow a strong contender for the #1 ranking in the coming months.

Currently in second place is Wax, which has seen an impressive increase in active data on Wax thanks to two dapps, Alien Worlds and Atomic Market. These two dapps account for over 70% of all NFT active data on the Wax blockchain, followed by Simple Market. overall, by the end of April, the Wax blockchain had 18,000 active transaction users per day.

Ether is the third most used blockchain for user transactions, with 14,600 active transaction users per day. However, due to crypto-punk, Ether is leading in terms of transaction volume.

NFT’s transaction volume declined

Compared to March, NFT trading volume dropped 21% in April, mainly due to the Flow blockchain. The drop in trading volume was mainly caused by technical issues faced by NBA Top Shot. The volume dropped from $217 million to $83 million. All in all, technical issues with NBA Top Shot affected not only overall activity numbers, but also its social media channels and community.

Dapp Radar Report: Dapp Industry Overview April 2021

Source: DappRadar

NFT trading on ethereum also faced a decline in April, due to a slight drop in trading volume on OpenSea and Rarible. On the other hand, crypto-punk trading volume increased by 19% YoY. This growth was driven by high sales ranging from $600,000 to $1 million per punk. Five of the top 10 NFT sales in April were from crypto-punks.

Dapp Radar Report: Dapp Industry Overview April 2021

WAX shows its potential on NFT

The WAX blockchain is known for its brand-related NFT dapps such as Street Fighter, Topps MLB, Garbage Pail Kids and the William Shatner series. There is no doubt that WAX blockchain dapps are the second most popular in the NFTs space according to data from the DappRadar NFTs page.

One of the biggest contributors is a mining game called Alien Worlds. In this game, players use NFTs to mine a cryptocurrency called Trilium (TLM). The simple mining mechanics attracted many bot players, which were turned off by the anti-bot mechanics it set up. As the number of active wallets continues to grow, it further demonstrates the desire of users to play Alien Worlds and earn TLM.

Coming in second and third place are Atomic Market and Topps MLB, the latter of which launched in mid-April. It looks like Topps wants to achieve in MLB what Dapper Labs has achieved with NBA Top Shot. While it’s too early to tell, the program has a lot of potential. The value of traditional baseball cards will soar as collectors experiment with new ways to store value.

Dapp Radar Report: Dapp Industry Overview April 2021

Source: DappRadar

WAX has huge growth potential, and Rarez, a new project that aims to bring scarce digital collectibles, digital music and other blockchain-based assets to the music industry, is bringing rock band Weezer and other well-known brands like Capcom’s Street Fighter and Topps Garbage Pale Kids to the block chain. Arguably, in the case of NFT, WAX could be the key to mass popularity.

Big brands have joined the NFT craze

Despite a decline in market activity, NFT transactions continue to attract the attention of traditional market participants. nft is particularly popular in the sports sector, with NBA Top Shot and Sorare ranking first and fifth, respectively, in sales among digital collectibles items.

NBA Top Shot and Sorare have proven that there is market demand for digital sports collectibles, so it is not surprising to see other major sports leagues and teams try to enter the NFT space. As mentioned earlier, Major League Baseball is trying to follow this trend. American entertainment magazine Playboy has partnered with the Nifty Gateway platform and is using its existing resources to sell NFTs by partnering with artists to launch NFT pieces.

As the market became more competitive, Nifty Gateway began partnering with mainstream celebrities (such as Paris Hilton, Steve Aoki and Grimes) to launch NFTs in order to continue to strengthen its position as a platform for launching quality NFT projects, but look for the results to be less than desirable.

April Summary

All in all, Ether is having a hard time competing with Tier 1 and Tier 2 solutions in the DeFi and NFT categories. wax and Flow are competing very well in the NFT space, while BSC and Polygon are dominating the DeFi ecosystem.

In terms of total locked-in value, Ether remains in the lead. This suggests that Ether is now being used more for higher value transactions, while the average user is looking elsewhere. bsc has $43 billion of value locked up, while the total value locked up in Ether is $65 billion. BNB is already among the top three in terms of market cap, with a growth rate three times that of the Ether DeFi ecosystem. If this growth continues, we could see BSC surpass Ether in TVL in the near future.

While April was an exciting month for sales and new projects in the NFT market, we observed a decline in both transaction volume and the number of users trading. This drop was mainly caused by NBA Top Shot website overload issues. However, NBA Top Shot is also introducing some effective measures to appease the community.

On the other hand, the decline in NFT sales and value may be temporary. NBA Top Shot is not only looking for ways to improve the scalability of its platform. big brands such as MLB, Playboy, and celebrities such as Snoop Dog and Paris Hilton may drive the industry into a new round of growth. Companies such as Sega and Hasbro have also revealed their intention to tap into the NFT market. Meanwhile, eBay and many other companies are also trying to explore more possibilities for themselves and the NFT market.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/dapp-radar-report-dapp-industry-overview-april-2021/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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