The user base of decentralized applications (dapps) has long been a point of contention, as the abysmal numbers ultimately fail to justify the large valuations attached to smart contract platforms, especially in an environment where ICOs aren’t particularly viable or positively viewed.
Recent data from State of the Dapps now shows that roughly 17% of all dapps, including those built on Ethereum (ETH), EOS (EOS), POA (POA) and Steem (STEEM) are currently inactive, where development activity has not occurred in a year. This means of the 2,281 total dapps, 394 are currently abandoned.
Despite the relatively high number of abandoned projects, the number of dapps has steadily grown over the last year, adding more than 100 per month. While this data notably does not include the TRON network’s 66 dapps, the recent wave of mainnet launches will likely further accelerate dapp growth.
While the 17% inactivity may seem high, recent reports on the EOS network indicate that accounts associated with those dapps also tend to be dormant. Despite the EOS network adding nearly 200 dapps and around 500,000 users in the last five months, some 63% of the accounts are currently inactive.
Many now point to dapps as a key ingredient to lift crypto out of the ongoing bear market, as once real adoption occurs, it will again be easier to justify high valuations on leading blockchain projects.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.