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Ethereum Loses Its Stranglehold on Developers and Decentralized Applications

Ethereum is ceding market share of decentralized applications (Dapps) and losing developers to its competitors. This bears attention, but there is no cause for alarm right now.

Created in 2015, Ethereum is one of the most popular blockchain platforms. Up until recently, it has had a virtual stranglehold on market share of Dapps and a supermajority of blockchain developers developing on its platform.

Source: Ethereum Platform at Software Reviews

In January 2019, 28% of all Dapps users were on the Ethereum network, in January 2018, 100% of Dapps users were on Ethereum. EOS and Tron, both competitors to Ethereum, now have 30% each of Dapps users. Many experts cite the lack of transactions per second and speed on Ethereum as a reason for users migrating to other platforms.

Our Take

Although Ethereum has lost a big portion of its Dapps user base, it is still a strong platform. Some of the loss is due to Ethereum being the first viable solution for Dapps development. There will always be normal attrition of market share as other competitors come online. A significant majority of initial coin offerings is still flocking to Ethereum, and it has a big fan base and developer support. Additionally, improvements to transaction speeds are supposed to take place in the next few months. The situation requires monitoring but there should be no cause for alarm right now.

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Ethereum Is Losing Its Luster and Its Market Share

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