Crypto exchanges: Towards personalized blockchains to attract DApps

Declining user numbers are pushing many cryptocurrency exchanges to reinvigorate the industry. Integration and development of DApp, creation of ecosystem funds, etc., are among the solutions adopted by these players.

Diversification of cryptocurrency exchange services

Huobi, Binance, KuCoin, Avalanche, NEAR and even Fantom are starting to react to the observation of a drop in the number of users. Binance and Huobi, for example, have decided to launch their own ecosystem funds for the development of DApps.

Case of KuCoin (KCC)

Although it was slow to respond, cryptocurrency exchange KuCoin wrote a check for $150 million to catch up. Part of this sum will be used in particular to help developers rely on the KuCoin Community Chain (KCC).

For the moment, we lack details concerning this new budgetary arrangement. The only clue in our hands would come from a recent statement from KuCoin indicating a possible switch to a model cross chain. This will allow the support of applications of several blockchains and the construction of a layer 2 system favorable to fast and lower cost transactions. Basically, KCC would like to seduce successful DApps over others chain.

We are not unaware that the KCC already has a diverse ecosystem of DApps. Its total value locked up (TVL) is estimated at $61 million. Most (90%) of this TVL is provided by MojitoSwap.

DApp seduction operation

In this story of creating growth funds to establish strong attractiveness in the eyes of DApps, NEAR, Fantom and Avalanche are not left out. About $600 million has already been pumped into DApp’s funds by them.

Provisional assessment: the results in terms of TVL, as well as user activities in one year are satisfactory.

Graph of transactions by protocols. Source: DappRadar

However, transactions for major networks fell amid market turbulence. DApps and DeFi exchanges are caught up in the current crises. Recent statistics confirm this: the number of transactions through DeFi DApps and exchanges combined has dropped to 3 million per week. Whereas before, they were estimated at 23 million over the same period.

But no need to give up for these DApps and networks. The downtrend and lack of investor confidence will not last. What drives these cryptocurrency exchanges to fight, to use money efficiently and to benefit from user acquisition.

Graph of transactions by categories. Source: DappRadar

At this point, the theory of build it and they will come’ theory (build it and they will come) seems to have seduced more than one.

Soon we will be able to verify the veracity of this theory. In any case, these cryptocurrency exchanges will do better to attract DApps from promising categories such as “ games “, the ” Play-to-Earn » or even the « Move-to-Earn “. This will certainly boost the audience of exchanges like KuCoin. At the same time, they will have an interest in betting on user acquisition rather than placing more values ​​on tokens. This is the only way to guarantee the success of a product in the long term.

Source : DappRadar

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Crypto exchanges: Towards personalized blockchains to attract DApps

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