DApp’s transaction volume has reached $ 270 billion so far by 2020, 95% of which is part of Ethereum’s DeFi ecosystem, DappRadar said. That’s an astonishing 1178% increase from last year’s total of $ 21 billion.

The blockchain data provider revealed the numbers in its annual DApp Industry Report today, summarizing the highs and failures of a record year for DApp-based economics.

The report stated that money flowed from BTC to ETH throughout the year, resulting in an increase in the price of ETH, from 0.018 BTC on January 1, 2020 to the current price of 0.028 BTC.

DappRadar speculates that attractive returns in DeFi were the “main trigger for Bitcoin flowing into Ethereum,” with Packaged Bitcoin (wBTC) and RenVM’s renBTC play a critical role in tapping into Bitcoin’s massive liquidity reserves for DApps.

The report described 2020 as the “ year DApps tried to grow at all costs, ” and found that just 10 DeFi DApps accounted for 87% of Ethereum’s total transaction volume.

Those 10 DApps in total more than one million active users in November, with the top three – DeFi Swap (Crypto.com), Uniswap and Compound – dominating the total with 930,000 between them.

The report noted that Ethereum’s limitations became apparent this year as the network “effectively hit a wall in terms of scalability” with average gas prices several times higher than last year.

Network congestion accelerated the rise of competitors during the second half of the year, with DApp-friendly platforms such as Binance Smart Chain, Tron and Wax accounting for a rapidly increasing share of the total DApp transaction value.

Also emerging is the severity of hacks and exploits of unaudited or improperly audited smart contracts used by DeFi projects. DappRadar estimates that more than $ 120 million was stolen in 12 major incidents in 2020. It predicted that “insurance will be the next major sub-category of the DeFi ecosystem,” as a result.

Although it has received a lot of attention recently, the “NFT Marketplaces” category showed only moderate growth throughout the year. The “Games” category remained flat and the “Gambling” category ended slightly lower.

The DappRadar report concluded that COVID-19 has actually served to strengthen DApp ecosystems by encouraging their use as problem-solving measures:

“It appears that the global pandemic has drawn more attention to decentralized solutions as talks deepened about the distribution of universal basic income and global database management systems.”

Looking ahead, DappRadar predicted that by 2021, DeFi will “play an even more influential role” and “form the foundation of the crypto economy” across all industries, including NFTs, games, logistics and other DApp categories.

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