It looks like altcoins Tron and Ethereum can each thank gamblers and gamers for the substantial increases both networks are seeing in the number of daily active users opening wallets on both platforms respectively. This according to a report by blockchain analysis firm DappRadar.
The number of daily active users initiating transactions on unique wallets connected to the Ethereum network is up 82% this year compared to where it was one year ago. Tron on the other hand is also seeing a substantial increase in the number of active unique wallets with 33% more action accounted for on its blockchain.
With such fantastic growth among two projects that both feature their share of decentralized applications related to the gambling and gaming niches, it might seem only natural to some that EOS, a platform that also features many applications in both categories and can facilitate transactions at a much faster rate than the Ethereum network, would be growing just as fast. Yet the DappRadar report suggests otherwise.
Why EOS is Down 61% in Active Wallets
Unlike its competitors featured in the same report, the number of unique wallets on the EOS network is indeed down 61%. 2019 started out with the bang but the spectacularly inefficient airdrop of tokens known as EIDOS is responsible for substantial network congestion that occurred on the EOS platform throughout the last three or four months of last year.
The number of EOS contracts processed per day dropped 43% in a short amount of time. This is because users figured out that they could automate sending EOS tokens to the EIDOS contract on the network and make a quick profit, but as more and more people began doing this, all of the networks resources started to go towards transactions related to the airdrop.
This effectively increase the cost of executing contracts on the network thousands of times, so the network slowed down and a significant number of people stop using it all together out of frustration. The airdrop essentially created a similar effect to what happens when hackers or malicious actors on a blockchain network try to launch what is known as a DDOS attack. That’s when people log on to a network and spam it to slow everything down, causing people to lose money, their sanity, or both.
Challenges Ahead For All Three Projects
Active wallet usage of the EOS network is continuing to drop as 2020 forges ahead. Needless to say there’s a lot of work to be done for the network to regain the trust of some of its most loyal users. That being said, just because Ethereum and Tron are on the rise, doesn’t mean they too don’t face significant challenges.
The reality is that most of the growth of both networks is tied to a high risk/high reward industry, gambling. While traditional centralized casinos virtually have a license to print money and can count on their coffers in order to continue building big brick-and-mortar establishments, a similar spamming situation on the Tron or Ethereum network would yield similar results.
What’s also important to note is that Tron’s growth in particular is dependent on gambling and gaming. The gambling and high risk category of usage on the platform is responsible for 83% of all the users transferring Tron tokens between one another. That’s great for gambling as a use case, but ideally a network wants its user base to be diversified, just like any other solid business or investment would be.
That’s where Ethereum shines. The platform has seen a 163% increase in its Games and Marketplaces category. The biggest hit in January was the game known as Brave Frontier Heroes, which is home to over 1,200 daily active wallets. The gambling game PoolTogether also doubled its user base last month.
What’s Next for the Gambling-Friendly Trio?
There isn’t much that any other altcoin project can do to knock Ethereum off of its perch as the world’s second most valuable cryptocurrency. That simply because ETH is the original altcoin and the network scores users from a variety of different categories in the way that younger, emerging blockchains won’t be able to get to for quite some time, if only due to a lack of brand recognition.
Still, all three have to be able to prove the same things within the context of gambling and gaming. That they can serve users quickly, allow everyone to play fair, and of course give every gambler and gamer a chance to win big.