TL;DR
- dApps led blockchain revenue generation in October 2024, raising $164 million out of a total of $182 million generated.
- The majority of these revenues come from trading bots and decentralized exchanges (DEXs) related to speculative trading.
- Despite the growth, the Binance Research report highlights the lack of investment in blockchain infrastructure.
Decentralized applications (dApps) dominated the blockchain market in terms of revenue generation during October 2024, according to the latest Binance Research report.
These dApps, mostly powered by decentralized exchanges (DEXs) and trading bots, raised a total of $164 million, representing the majority of the $182 million generated by the top three blockchains: Tron, Ethereum, and Solana. The rise of dApps is a result of the growing adoption of blockchain technology, mainly driven by speculative trading and memecoin platforms.
What is Behind the Success of dApps?
One of the main causes is the proliferation of trading bots and applications linked to memecoin trading. Platforms like Pump.fun and Photon, based on Solana, were responsible for $29 million in revenue, while other popular DEXs like Uniswap, PancakeSwap, and Aerodrome generated a combined total of $35 million. Together, these decentralized trading services and bots accounted for over $100 million in revenue.
Lack of Investment in Blockchain Infrastructure
However, the report also raises concerns about the lack of investment in blockchain infrastructure. Despite over $1.2 billion being allocated to layer-1 and layer-2 infrastructure projects since 2019, surpassing funding for DeFi, gaming, and tooling applications, the report emphasizes that the development of new applications will be crucial to attracting new users and ensuring the industry’s growth in the future.
Solana Dominates the Market
On the other hand, the crypto market experienced a 2.8% increase in its total market capitalization during October 2024, driven by significant inflows into Bitcoin exchange-traded funds (ETFs) and the release of positive U.S. employment data. Potential regulatory changes related to the U.S. presidential elections are also expected. It is particularly highlighted that on-chain applications are gaining ground, representing a larger share of the revenue within the sector.
Regarding token launches, Solana emerged as the leading blockchain, benefiting from the popularity of memecoins and the ease of creating new tokens. SOL captured 90.6% of all token launches in the week ending on October 21