Advertise
CoinTrust
BTC
ETH
BCH
SOL
DOGE
SHIB
  • News
  • Bitcoin
  • Ethereum
  • Altcoin
  • Market Cap
  • Learn
    • Buying Crypto
    • Crypto Mining
    • Crypto Exchanges
    • Knowledge
  • Crypto Casinos
    • Bitcoin Casinos
    • New Crypto Casinos
    • No KYC Crypto Casinos
    • Anonymous Crypto Casinos
    • VPN Friendly Crypto Casinos
    • Bitcoin Poker
    • Crypto Poker
    • Bitcoin Bingo
    • USDT Casinos
    • Offshore Online Casinos
    • Bitcoin Betting Sites
    • Crypto Sports Betting
    • Reddit’s Best Bitcoin and Crypto Casinos
No Result
View All Result
CoinTrust
  • News
  • Bitcoin
  • Ethereum
  • Altcoin
  • Market Cap
  • Learn
    • Buying Crypto
    • Crypto Mining
    • Crypto Exchanges
    • Knowledge
  • Crypto Casinos
    • Bitcoin Casinos
    • New Crypto Casinos
    • No KYC Crypto Casinos
    • Anonymous Crypto Casinos
    • VPN Friendly Crypto Casinos
    • Bitcoin Poker
    • Crypto Poker
    • Bitcoin Bingo
    • USDT Casinos
    • Offshore Online Casinos
    • Bitcoin Betting Sites
    • Crypto Sports Betting
    • Reddit’s Best Bitcoin and Crypto Casinos
No Result
View All Result
CoinTrust
No Result
View All Result

Home » Are Ethereum dApps Massively Overvalued? Augur User Valued at $200k

Are Ethereum dApps Massively Overvalued? Augur User Valued at $200k

Joseph Young by Joseph Young
Aug 15, 2018
in Ethereum News, News
Reading Time: 2 mins read
0

According to cryptocurrency researcher Kevin Rooke, Ethereum-based decentralized applications (dApps) such as Augur, AirSwap, and Decentraland are massively overvalued.

As one of the oldest and most complex dApps launched on top of the Ethereum protocol, the development team of Augur has spent most of their resources over the past three years exploring various ways to deploy large-scale apps on Ethereum’s smart contracts.

Consequently, the launch of Augur on the Ethereum mainnet in July was met with hype and respected investors went as far to state that the release of Augur on the Ethereum mainnet could positively impact the price of Ether, the native cryptocurrency of Ethereum, in the long-term.

Augur is a decentralized prediction marketplace that enables anyone to create a betting market for any topic and subject through the utilization of smart contracts. For instance, a user could create a betting line for the next presidential election of the US while placing bets on the next winner of the European Champions League in football.

The dApp has received the admiration of some of the most widely recognized public figures in the cryptocurrency community including Ethereum co-creator Vitalik Buterin, mostly due to the efforts of the team to deploy such a complex application on the blockchain.

Still, despite the hype surrounding Augur, the number of the dApp’s active monthly users hover at around 1,200 and less than a hundred users utilize the platform on a daily basis.

That means, investors of the Augur dApp, which has a market valuation of $250 million, is valuing each user of Augur to be worth $200,000, a number that obviously is not sustainable or reasonable. The market valuation of Augur is not proportional to its active user base or app activity.

This large discrepancy between market valuation and user base is present in almost every dApp with a publicly tradable token in the global cryptocurrency exchange market. With a valuation of $14 million, each user of decentralized digital asset exchange AirSwap is valued at $10,000, and every user of Decentraland, a virtual reality platform based on Ethereum, is valued $270,000.

Buterin’s Concern

In December of last year, Buterin publicly expressed his concern over the rapidly increasing valuation of the crypto market and questioned whether public blockchain networks and dApps have done enough to justify their value.

“So total cryptocoin market cap just hit $0.5T today. But have we earned it? How many unbanked people have we banked? How many dapps have we created that have substantial usage? Low added value per user for using a blockchain is fine, but then you have to make up for it in volume. How much value is stored in smart contracts that actually do anything interesting?” Buterin said.

Since then, the valuation of the cryptocurrency market has dropped by more than 50 percent and dApps, public blockchains, and cryptocurrencies have seen a decline in their user activity rather than an increase in adoption.

In the upcoming months, as the New York Stock Exchange and Starbucks emphasized in their latest announcement, it will be crucial for the cryptocurrency sector to focus on the adoption of digital assets to ensure the market’s long-term growth.

Previous Post

Healthcare Service Provider Medipedia Shifts From Ethereum To EOS

Next Post

LedgerX Launches Bitcoin Deposit Scheme With Returns of Upto 16%

Related Posts

coinbase partners with perplexity ai

Coinbase Taps Perplexity AI to Deliver Smart Crypto Insights

by Kelly Cromley
Jul 14, 2025
0

Coinbase has entered into a strategic collaboration with Perplexity AI to provide users with real-time cryptocurrency market data through artificial...

Hedera

Hedera Moves Closer to AI Mainstream with Intel and NVIDIA Support

by Kelly Cromley
Jul 14, 2025
0

Hedera, a decentralized public blockchain, appears to be stepping into the spotlight as a key enabler of artificial intelligence infrastructure,...

Kenya

Kenya Launches $KDT Token on Solana Blockchain to Drive Digital Inclusion

by Kelly Cromley
Jul 14, 2025
0

Kenya has taken a notable step toward embracing digital innovation through the public endorsement of a private sector-led initiative to...

imagen network

Imagen Integrates XRP for Faster Web3 Social Transactions

by Kelly Cromley
Jul 13, 2025
0

Imagen Network, a decentralized social platform driven by artificial intelligence, has introduced XRP-based liquidity modules across its multichain infrastructure. This...

endless partners with rei network

Endless and REI Network Join Forces to Simplify Web3 Development

by Kelly Cromley
Jul 13, 2025
0

Endless Protocol has announced a strategic partnership with REI Network, a lightweight blockchain infrastructure developed by GXChain Global. The collaboration...

Injective Blockchain Faces Backlash as INJS Minting Comes to Abrupt Halt

Injective Forms Power Council to Bridge Web2 and Web3

by Kelly Cromley
Jul 13, 2025
0

Injective has unveiled the Injective Council, a newly established strategic advisory group comprising senior representatives from major Fortune 500 firms...

Next Post
LedgerX Launches Bitcoin Deposit Scheme With Returns of Upto 16%

LedgerX Launches Bitcoin Deposit Scheme With Returns of Upto 16%

  • Collé Ai

    Collé: Pioneering AI Web3 Platform Receives Investment Boost from BlackRock

    by Kelly Cromley
    May 13, 2024
  • Router Protocol and OpenWorldSwap Partnership to Revolutionize DEX Market

    by Kelly Cromley
    Aug 6, 2024
  • Hyper Foundation Launched to Boost Hyperliquid Blockchain Development

    by Kelly Cromley
    Oct 15, 2024
  • Central Bank of Saudi Arabia Teams Up with Ripple to Transform Cross-Border Settlements

    by Kelly Cromley
    Aug 17, 2023
  • GameStop’s Digital Transformation: Embracing Blockchain and NFTs

    by Kelly Cromley
    Feb 2, 2025

Recent News

coinbase partners with perplexity ai
Market News

Coinbase Taps Perplexity AI to Deliver Smart Crypto Insights

by Kelly Cromley
Jul 14, 2025
Hedera
Market News

Hedera Moves Closer to AI Mainstream with Intel and NVIDIA Support

by Kelly Cromley
Jul 14, 2025
Kenya
Market News

Kenya Launches $KDT Token on Solana Blockchain to Drive Digital Inclusion

by Kelly Cromley
Jul 14, 2025
imagen network
Market News

Imagen Integrates XRP for Faster Web3 Social Transactions

by Kelly Cromley
Jul 13, 2025
endless partners with rei network
Market News

Endless and REI Network Join Forces to Simplify Web3 Development

by Kelly Cromley
Jul 13, 2025

Categories

  • Altcoin News
  • Analysis News
  • Binance Coin News
  • Bitcoin News
  • Blog
  • Cardano News
  • Ethereum News
  • ICO News
  • Legislation News
  • Market Forecasts
  • Market News
  • News
  • Ripple News
  • Solana News
  • Tether News
Trustpilot

Cointrust

  • About Us
  • Contact Us
  • Correction Request
  • Our Team

Legal

  • Disclaimer
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy

Popular

  • ICO Listings
  • Knowledge Base
  • All about Mining
  • Cryptocurrency Exchanges
  • How and Where to buy Cryptocurrency

Sitemap

  • News section
  • Sitemap
  • XML Sitemap

© 2024 CoinTrust.com.

CoinTrustCoinTrust

* DISCLAIMER: All information provided in CoinTrust is merely for informational purposes, we are not an investment advisor and not affiliated with any companies or ICO/Cryptocurrency Projects. To use this website you must accept our cookie policy, Disclaimer and Privacy Policies.

No Result
View All Result
  • News
  • Bitcoin
  • Ethereum
  • Altcoin
  • Market Cap
  • Learn
    • Buying Crypto
    • Crypto Mining
    • Crypto Exchanges
    • Knowledge
  • Crypto Casinos
    • Bitcoin Casinos
    • New Crypto Casinos
    • No KYC Crypto Casinos
    • Anonymous Crypto Casinos
    • VPN Friendly Crypto Casinos
    • Bitcoin Poker
    • Crypto Poker
    • Bitcoin Bingo
    • USDT Casinos
    • Offshore Online Casinos
    • Bitcoin Betting Sites
    • Crypto Sports Betting
    • Reddit’s Best Bitcoin and Crypto Casinos

© 2024 CoinTrust.com.

We use cookies to ensure that we give you the best experience on our website.
If you continue to use this site you agree to allow us to use cookies, in accordance with our Cookie Policy.
I Agree