Cryptocurrencies like EOS and TRON promote the advantages of their blockchains for DApps and Smart Contracts. However, a recent study shows that developers have greatly reduced their involvement there. Market leader in this segment remains Ethereum.
In the competition among cryptocurrencies, it is not only price developments that investors should be aware of. Rather, Altcoins compete with practical examples of use cases. DApps and Smart Contracts are fields where projects like EOS and TRON (TRX) want to demonstrate their uniqueness. But EOS in particular seems to be losing its appeal among developers, as a recent study by Outlier Ventures shows. According to the study, there are now 86 per cent fewer developers than a year ago who are giving EOS their attention. At TRON (TRX) the decline was 51 per cent.
The analysts chose code updates published on Github as the second criterion for how actively they work on crypto ecosystems. Here EOS and TRON are both down by around 95 percent year-on-year, which seems to confirm the trend. Without continuous development work a cryptocurrencies remains lifeless. EOS and TRON actually dream of people using Coins in their networks to use DApps and Smart Contracts. Games and contracts, paid information and casinos are just a few examples of what can be realised in DApps with Smart Contracts. The undisputed market leader in this area is Ethereum (ETH) with market shares of around 80 percent. EOS follows in second place with just under 9 percent, TRON is far behind with less than 3 percent.
EOS – is the air out?
Just a year ago, Block.one, the blockchain company behind EOS, had drummed up business at a major event. Such events are intended to inspire both investors and developers. But at EOS, the announcements were not followed by much, the flagship project Voice was even technologically and financially separated from EOS and Block.one. Accordingly, investors are also turning their backs on EOS. At the beginning of June 2019, EOS was still quoted at over USD 10 and has since plummeted to just USD 2.55. EOS is now even threatening to fall out of the prestigious Top Ten cryptocurrencies in terms of market capitalization.
Ethereum remains the benchmark for DApps and Smart Contracts
Ethereum also recorded slight year-on-year price losses and a slight decline in active developers. However, those who use blockchain and cryptocurrencies to implement innovative solutions turn to Ethereum. 98 percent of all crypto-developers deal with the Ethereum ecosystem, according to a study (https://blog.embarklabs.io/news/2020/03/04/2020-blockchain-Developer-Survey/) by Embark. This includes ERC-20 tokens, Ethereum Classic and other spin-offs.
How are newcomers in the field of active developers doing?
Outlier Ventures sees projects like THETA and Cardano (ADA) on the upswing when it comes to where developers are getting involved. A year-on-year increase of 931 percent in code updates for THETA and 580 percent for Cardano speak for themselves. However, a low starting point must be taken into account, which is what makes enormous growth rates possible in the first place. Polkadot (plus 40 percent) and Cosmos (ATOM) (plus 15 percent) are named as other winners in the area of active developers. Both projects focus on making different blockchains compatible with each other, also with regard to Smart Contracts and DApps.
Conclusion: Active developers an indication of price curve at EOS and Co.
As an investor, you can also take a look at the DappRadar study from April. Similar to the advice from Outlier Ventures, you will come to the same conclusion: there are a whole range of logical criteria that can be used to measure how the attractiveness of projects committed to DApps and Smart Contracts develops. Cryptocurrencies and their blockhains play more of a role in this sector than Bitcoin (BTC), for example, where value storage and payment functions are the dominant themes.
So if you want to invest in the promising areas of decentralized apps and contracts, Ethereum is the place to go. With Ethereum 2.0, groundbreaking changes are on the horizon and an independent community is filling the ecosystem with content. EOS, on the other hand, is on the downward spiral; Block.one has also angered independent developers by exercising voting rights. In TRON’s ecosystem with TRX and BitTorrent Token (BTT), the situation is more complex than the data suggests, as several coins could well be added together.
An indication of where developers and investors are heading is also provided by the IEOs of Binance and new listings