For the past few years, Ethereum has dominated the decentralized application (dApp) space, processing $7.6 billion worth of transactions in 2018. While a large amount of this is attributed to activity on decentralized exchanges, close to half of Ethereum’s dApps are betting-related. However, in 2019 it appears its monopoly in the online gambling space is decreasing.
As 2018 drew to a close, dApps built on the EOS and Tron (TRX) blockchains began to steadily grow in popularity and have now surpassed Ethereum in total transactions. According to a report from financial information publisher DIAR, EOS alone accounted for 55 percent of all dApp transactions in January this year.
The report also notes that Tron now accounts for 38 percent of dApp activity, leaving the once-powerful Ethereum responsible for only six percent of transactions.
Huge growth in online gambling dApps
The huge growth in dApp activity on these blockchains is largely attributed to online gambling dApps, which account for over 95 percent of all apps on the Tron network and 66 percent on EOS. While major development firms and institutional investors may still favor Ethereum for dApp development, EOS and Tron have certainly benefited from targeting the online gambling community.
The hugely popular TRONbet and TronDice betting dApps helped to create a surge in TRON transactions in November last year that briefly surpassed the combined transactions of the four major cryptocurrencies.
An uncertain future of gambling dApps?
However, a new ruling from the U.S. Department of Justice (DoJ) threatens to kill the dApp gambling dream in the States. Last month, Bloomberg reported that the DoJ reached a decision that effectively illegalizes all forms of online gambling, including those using cryptocurrencies.
Following a 23-page opinion issued by the DoJ’s legal team, restrictions enforced by the Federal Wire Act of 1961 were expanded to include all forms of gambling. Previously, the law only prohibited online gambling related to sports bets.