Based on a recent study conducted by Binance Research, most of the decentralized applications (dApps) have made a huge revenue of $164 million in October 2024. This itself sets up the of the increased, adoption and usage of dApps. This rapid upturn in metrics points towards an increasing affinity towards blockchain technology, more so attributed to the rapid rise of both trading bots and decentralized exchanges (DEXs).
The report highlights that 12 out of the 15 dApp protocols recorded the highest revenues in October, which signifies a positive trend in blockchain usage. The total income earned from these applications shows that the market is on the rise in regard to decentralized finance (DeFi), especially now that users are more active on trading platforms. Notably, the top three blockchains, Tron, Ethereum, and Solana, managed to earn as much as $182 million in revenue, which makes them stand out in their market competitiveness.
Why Users Are Shifting Away from Centralized Systems
The increase in dApp engagements has been on the rise for the past few months, which depicts that users are more inclined towards tech-savvy options than conventional centralized ones. This is especially notable since the time of the speculative trading of meme coins, which in turn has led to increased profitability of various apps.
Among the standout Dapp performers were Solana-based applications such as Pump. fun and Photon that stood out at the top, which made a combined revenue of $29 million last month. “Other trading bots, including but not limited to Trojan, BONKbot, Maestro and Banana Gun, made up to 41% of the total dApp revenue with $67 million.”
The report also states that well-known DEXs like Uniswap, PancakeSwap, and Aerodrome also made revenues of $16 million, 10 million, and 9 million US dollars, respectively. In total, more than $100 million in revenue was generated from DEXs and trading bots in fees, which depicts that users prefer dApps for trading-related applications.
Trading Bots and DEXs Lead the Charge in October
In addition, the research also states that already existing decentralized exchanges such as Uniswap, PancakeSwap, and Aerodrome earned $16 million, $10 million, and $9 million, respectively. All in all, the gross fees generated by DEXs and trading bots went over the $100 million mark.
Although the revenues of dApps have grown tremendously, the Binance Research report questions whether there is an overvaluation of the funding towards infrastructure projects, especially layer-1 and layer-2 blockchains. These infrastructure projects have garnered over $1.2 billion in funds since December 2019, which is higher than all the funds used to develop DeFi applications, tools, and gaming products.
Infrastructure Projects Under Scrutiny: Are Layer-1 and Layer-2 Initiatives Overfunded?
Even though the report acknowledges the importance of infrastructure investments for the sustaining investment blockchain ecosystem, it argues that new applications that seek a product-market fit are super important in onboarding new users and increasing overall engagement in the industry.
This viewpoint shows that there is a scope for reconsideration of the funding approaches in the case of blockchain projects, especially for the projects that are now beginning to show huge revenue margins like dApps.
Revenue Signals a Promising Future for Decentralized Applications
According to the analysis conducted by Binance Research, there is a paradigm shift for decentralized applications in the blockchain ecosystem. With dApps gaining widespread popularity and attracting a huge revenue base, they are likely to contend with traditional infrastructure projects for the share of revenue generation. This situation may result in a loss of resources and investments in old infrastructure projects and a focus on revenue-making dApp projects to fulfill user needs.
In addition, considering the rise in usage of dApps by the users, it is expected more innovations to be seen in this space. The continued advancement of decentralized finance and other such applications is likely to enhance the availability and effectiveness of financial services offered.
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