DApps Usage Is Declining And Here Is Why

DApps are capable of storing the value within themselves. This gives them a great opportunity to create new and exciting economic models. An example such can be the ‘’blockparty DApp’’ that gives rewards to people who show up to an event by distributing the deposits between them without fees. Finding an easy-understanding definition of what dApps are can be frustrating. This is why we are not going to waste your time defining something you all probably understand how it functions.

As awesome as they sound, the usage of decentralized apps on the Ethereum Blockchain declined sharply by more than 56% since the start of this year. The ethereum platform is the most popular and used platform to launch dApps because it’s the original blockchain to develop dApps. Ethereum has a very complex, innovative technology and smart contract options which make it spot on for dApp development. The numbers show that Ethereum isn’t maintaining the user base and this is affecting the usage of dApps eventually.

This might also be the reason why the price of Ethereum dropped dramatically since January this month. Ethereum fell much faster than bitcoin did which shows that users are running away from it if the next price drop happens. Ethereum’s price is directly influenced by the number of people using it. This drop in the usage of dApps makes us predict a bearish long-term look for Ethereum. Hopefully, when the next corrective rally starts, we can expect a usage rally as well.