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Ethereum DApp Transactions Set New All-Time High

Ethereum DApp Transaction April 2019

Despite reports that Ethereum has been conceding market share in the space of decentralized applications (DApps), after owning nearly 100 percent of the industry just a year ago, ETH transaction volume has registered a new all-time high.

According to analytics firm Diar in a report published on May 6, Ethereum has hit an all time high in DApp-based transactions for Ether for the month of April 2019, beating out the previous record set in December of last year. April’s high for ETH-based transactions, which amounted to 776,000 Ether sent on-chain through decentralized applications, was the culmination of a four-month growth trend in volume.

However, Diar points out that while Ether has been experiencing a growth in both Ether and U.S.-dollar valued transaction volume, the rate of newly deployed DApps has been in steady decline, reaching a 15-month low. Despite the drop in new application creation, Diar reports that $132 million worth of tokens was transacted via DApps, given a strong indication on the health of the industry even if new enterprise is slowing down.

The majority of DApp transaction volume was driven through decentralized exchanges (DEX) and gambling applications, which have found a particularly promising niche in the landscape of cryptocurrency and DApps. With the crypto markets experiencing a bullish turn around, transaction volume in both Ether and dollar-valuation is up 186 percent since the start of the year, when the industry took a step back from December’s last all time high.

However, Diar points out that the stalling of new DApp creation, even in light of record-breaking transactions volume, could be troubling by some metrics. Ethereum continues to be the industry leader in new projects issued on-chain, controlling 60 percent of the mere 88 DApps deployed for the month of April.

Nonetheless, the analytics firm claims that developer interest in DApp creation has “hardly waned.” According to the report,

“The Truffle Framework which has become a core tool for programmers to build on top of Ethereum has seen downloads hit an all-time high this year with a sustained quarter-on-quarter growth. The likelihood however that developers are focusing on token-based projects might be slim despite the attention given to coins due to monetary value sparking speculator gains – and losses.“

Diar also gives an update on the future outlook for DApps and the industry of token-based applications, saying that developers will likely continue to hit walls in deployment given the current issues related to scale. In particular, the infrastructure for Ethereum–and most DApp-based cryptos–has yet to address the methods for handling the level of adoption seen in other app-based marketplaces,

“Developers will likely continue hitting roadblocks with infrastructure still far from scale and a user experience effectively in their first iteration on Ethereum.”

The propensity for new blockchain projects entering the space of decentralized applications could further fraction developer focus, spreading resources across multiple projects. Already the market has experienced a transition away from Ethereum, which held the overwhelming majority of DApps, to relative newcomers EOS and TRON. Further projects entering the space will drive new interest and innovation, but may, at least initially, water down the pool of development in creating with existing blockchain tools.

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Here’s Why Ethereum (ETH) Is in the Early Stages of a Possible Mega Rally

Ethereum ETH

Despite low volatility, Ethereum
(ETH) has been performing well over the past few weeks, but the cryptocurrency
could go even higher in the long run. Because of this, believers and traders
are ramping up as they reckon that the second most valuable coin is in the
early phase of a super rally. At spot rates, the coin is changing hands at
$155, down 10.1 percent in the last week after retracing from $190 Q1 highs and
$170 resistance level.

According to DonAlt, a famous
cryptocurrency trader, just thinking about longing Ethereum makes the
cryptocurrency experience price increase. The trader post reads:

“I’m finally warming up to the idea of an ETH long again. Not sure if it’s caused by the chart or the fever I’m currently dealing with. Will report back when I decide to pull or not pull the trigger.”

Before adding that:

 “I legit only have to think about longing ETH and it goes up. This shit is like magic. And no I haven’t longed yet, and yes you’re all gonna burn in hell for front running me.”

While ETH continues to experience a
random pattern of trading since the start of the year, it’s price is up
year-to-date, bouncing off $70 and up 11.81 percent in the last month. Because
of supportive technical factors, shifting sentiment and general optimistic
leads from traders/analysts, several investors are channeling their hard-earned
funds into ETH with conviction that the coin would print higher by close of the
year.

Read: Vitalik Buterin Proposes Updated Staking Reward for Ethereum

There are several reasons why
cryptocurrency enthusiasts are optimistic about Ethereum’s future. In the first
instance, the Ethereum developers approved the EIP 1234 to reduce it to reduce
block rewards to just 2 ETH per block in what has been called thirding. This
development would help ETH have a better value alignment with BTC and reduce
the inflation rate.

So far, the Ethereum network has been
achieving this. Eric Conner, a developer, says that Ethereum
inflation is on the decline and it could drop even lower by the end of the
year. He tweeted that by the end of 2018, the Ethereum network was targeting an
inflation rate of 4.7 percent. Once the Ethereum network adopts the Proof of
Stake Protocol, then the inflation rate would even drop below 2 percent and
continue to decline towards 0.5 percent.

Ethereum Is an Excellent Store of Value

While Bitcoin (BTC) is seen as a
great store of value, Ethereum (ETH) is also making a claim for that position.
The Constantinople upgrade was already implemented but not entirely. Once it is
complete, the Ethereum network would become scalable and overcome the slow
transaction speed plaguing it.

There are predictions that the supply
of ETH will decrease while its demand would increase. Once that happens, the
price of ETH will naturally inch higher as the law of supply-demand kicks in. Add
that to a projected increase in demand for ETH due to more use of gas, higher
investment due to speculation, and more usage of DeFi apps, the path of least
resistance has been defined.

Ethereum’s claim for a store of value
will get a boost for more usage as gas fees, staking, and storage fees. As the
inflation rate goes down to roughly 0 percent over the next two years, the
supply of ETH will decrease.

Furthermore, in Serenity and once proof-of-stake
is implemented allowing staking, it would limit the number of ETH in
circulation. Because of this, an ardent ETH believer James Spediacci says, ETH
will have the six characteristics of money which are; durability, portability,
acceptability, divisibility, uniformity, and limited supply. These six
characteristics imply that people would consider ETH as a store of value, a
unit of account, and a medium of exchange.

Also Read: Ethereum 2.0 is NOT Delayed “By a Single Day”, Vitalik Buterin
Says

The EIP 1234 implementation, the
Constantinople upgrade, and the potential switch to PoS would all play a role
in making ETH a good store of value. Therefore, it’s not hard to see that the
timing, combination of development and technical factors would naturally lift
prices of ETH higher in the long run. We could, and odds are we are already
there, in the early phase of a ETH leg up Ether leg up that investors have been
longing for sometimes now.

The post Here’s Why Ethereum (ETH) Is in the Early Stages of a Possible Mega Rally appeared first on Ethereum World News.

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Ethereum Founder Vitalik Could Be Worth $100M+, Crypto Investor Speculates

Vitalik Still Owns $50 Million In Ethereum

Crypto investors are curious folk. Almost every stakeholder wants to know who Satoshi really is. So, it should come as no surprise that some have delved into blockchain data to determine the net worth/asset value of some of this space’s leading figures. Alex Sunnarborg, who heads cryptocurrency hedge fund Tetras Capital, recently divulged a bit about the financial status of Vitalik Buterin, the creator of Ethereum.

In a six-part thread, Sunnarborg did his utmost to analyze the publicly-known wallets of the Russian-Canadian coder. It was explained that per Etherscan, Buterin currently owns the keys to the 24th most valuable Ethereum (not counting ERC tokens) account.

The wallet in question has custody of 350,003 Ether, 0.332% of the asset’s current circulating supply. At current valuations, such a cryptocurrency stash is valued at $50,000,000 by the market — evidently no small sum. 350,003 ETH is drastically less than the 500,000 coins he received during Ethereum’s genesis block, presumably for his work building the blockchain from the ground up.

Sunnarborg speculates that the disparity between the Ether amount Buterin initially received and his current balance is due to a series of cash outs, which were purportedly completed between June 2017 and February 2018. The investor adds that these sales likely netted Vitalik approximately $40 million, which has likely funded Buterin’s little-known living habits.

And with that, Sunnarborg concluded that Buterin’s finances can be broken down as follows: $50 million worth of Ether in primary address, $40 million in fiat reserves, and likely millions worth of Ether, ERC tokens, and project equity.

Long story short, Buterin is doing rather well for himself.

Bone To Pick With Ether?

While Sunnarborg did not divulge his reasoning for issuing the aforementioned thread, some have speculated that he has a bit of a bone to pick with Ethereum. One Twitter user with the moniker “Yanay” asked if this thread was meant to shame Buterin, who has been rather closed about his private life throughout his seven or eight years in the industry. And in the eyes of some, this may be the case.

In a recent Forbes interview, the Tetras Capital representative noted that recent layoffs at Consensus Systems, better known as ConsenSys, should have a negative effect on the broader Ethereum ecosystem.

He added that the fact ConsenSys is an integral part of this subsector and underwent purportedly drastic staff cuts should have some worried. Generalizing DApps and products on the platform, Sunnarborg explained that many promising offerings have yet to launch, and the ones that have are “pretty difficult to use” and have little-to-zero active users.

Case in point, the Tetras capital founding partner drew attention to the mere $40,000 currently staked on Augur, a multi-million dollar ICO. Thus, he claimed:

“There’s this massive disconnect between how much money is still tied up in these projects and how much people actually use them.”

Sunnarborg added that Ethereum may also become pressured by competition blockchains, like Dfinity or Polkadot, along with the fact that the chain’s development is losing momentum and steam.

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