Tron’s dominance within the dApps space has seen its volume of daily activity rise sharply over the last year.
In 2019, the network has registered over 432,000 users, leading other dApp platforms by hitting a record $1.6 billion worth of activity in Q1 alone.
A new report now shows that most of these volumes are derived from dApps in the gambling niche. According to a study by analytics platform Dapp Review, 64 percent of the decentralized applications on the Tron blockchain offer gambling-related games.
Users on the Tron network can access gambling dApps such as digital dog racing or a game in “farm investment” that lures participants with an incentive such as a 100 percent return.
Dapp Review notes that gambling games drove Tron’s dApps volume in the first quarter, with most of it rising in March. For instance, March 15 saw more than $102 million transacted- beating EOS’ estimated $16 million and Ethereum’s $4 million in daily dApp volume.
Tron launched its ICO in 2017 and migrated from the ethereum blockchain in June 2018 after its mainnet went live at the end of May that year. Justin Sun and the Tron Foundation then spearheaded an aggressive growth strategy that included courting Ethereum dApp developers.
At the same time, EOS also overtook Ethereum for the number of dApps after the latter’s ballooning fees forced developers to shift.
As per Dapp Review’s estimates for Q1, 2019, 27.6 percent of Tron-based decentralized apps offer casino activity. About 17.7 percent are in the gaming niche, while a leading 36.3 percent of the dApps are in the “high risk” category of gambling games.
In contrast, gambling-related dApps on the Ethereum network account for just 37 percent (in both categories of casino and “high risk” games).
For the benefit of users, a “high risk” gambling game is one that has virtually no gameplay, with a smart contract used to determine eventual payouts. Source: Dapp Review
Sun has reportedly played a leading role in driving the dApps agenda of the Tron network. Even though the Tron Foundation has been on record discouraging the launch of unauthorized gambling dApps, several developers have reported receiving rewards of up to $10,000 worth of Tether (USDT) for building games.
While acknowledging the rewards, a Tron spokesperson noted that the said funds were from the Tron CEO’s personal accounts and not from Tron’s coffers.
Developers across the crypto and blockchain ecosystem are likely to persist with a move towards gambling portals, and Tron may account for most of these thanks to Sun’s efforts.
TRX has benefitted from the surge in gambling dApps, buoyed by a steady contribution from the Tron developer community.
Doubts have however persisted regarding Tron’s capacity to sustain this growth longterm. According to the CEO of Dapp Review Vincent Niu, it’s fine to be less optimistic about the platform’s overall future projections.
Niu reportedly told Coindesk that “most of the users [of Tron dapps] are just fake accounts.” He, however, believes it’s going to be different for Ethereum given that a growing number of people continue to work on “token standards and other infrastructures.”
He also noted that an analysis of dApp transaction data shows that it is possible some users only use the dApps as an avenue to acquire TRX tokens, particularly those in jurisdictions that do not allow the purchase of TRX using fiat.
Ruslan Marinov, the founder of one of the casino dApps on the Tron blockchain 888tron, believes that the support the Tron Foundation gives to developers makes it a great choice for gambling or gaming dApps.
All the prize money the foundation pours into developers pays off more than ten times, with the March 15 surge a likely result of gamers or gamblers cashing out their dApp tokens.
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