In the present day, more than 3,000 decentralized apps are running on Ethereum.

These apps give users more control over their data than regular mobile and web apps. The same goes for traditional apps, like Robinhood and Twitter, where a central authority controls data security and use.

The Ethereum cryptocurrency uses blockchain technology to let apps decentralize data management, so users have control again. It’s the second-largest cryptocurrency (after Bitcoin) and the first platform to let developers create apps.

Top Ethereum projects

DeFi

Decentralized finance, or DeFi, is a big thing right now in Ethereum projects. Cryptocurrencies, such as loans and derivatives, can be used for more complex financial transactions through DeFi.

During 2020, DeFi gained significant traction, with the total value of crypto assets locked in its protocols rising over 2,000% from $650 million in January to $16.05 billion in December.

Ethereum DApps, which use ether to send payments, have been seeing higher transaction fees because of congestion. There’s competition between app users for faster transaction processing by miners, which is why this happens. ETH miners are likelier to add a transaction with a high fee to the blockchain first.

MakerDAO

Stablecoins address some of the pain points of cryptocurrency. The volatility of cryptocurrencies makes them unreliable as a means of payment or a store of wealth. The MakerDAO stablecoin differs from other stablecoins because it has a detailed plan for decentralizing control.

Uniswap

Uniswap is a decentralized exchange that doesn’t control users’ funds, and it’s the most popular decentralized exchange so far. This exchange facilitates trades between coins in Ethereum’s recent booming DeFi movement. SushiSwap even tried to eat all its users.

Plus, Uniswap uses an automated market maker (AMM) system for trading, which means the liquidity pools do the coin swapping via smart contracts instead of traditional order books.

A centralized crypto exchange’s market price is determined by supply and demand. Liquidity is needed on both sides of the order book for a transaction to go through. An algorithm on AMM-based exchanges like Uniswap determines each asset’s price. The liquidity provided by investors is pooled together and used to execute trades.

Chainlink

In essence, Chainlink is an Oracle platform that combines smart contracts with real-time external data, like stock prices. Smart contracts execute predefined instructions based on data—for example, a hurricane insurance payout.

Although Chainlink has been around since 2017, it got noticed after partnering with Google in 2019. Ethereum’s ERC-20 crypto token LINK powers Chainlink.

Axie Infinity

Axie Infinity is a role-playing game where you collect and raise fictitious characters called “Axies.” Axies are Non-Fungible Tokens (NFTs), which means they’re cryptographically unique, the gamer owns them, and they’re collectible and have a monetary value.

Aave

Aave, a decentralized platform for lending and borrowing, has raised $25 million from Blockchain.com and Blockchain Capital. Aave has $1.14 billion locked up, making it the fourth-largest DeFi app. It was the biggest earlier this year.

Other Ethereum DApps

• Compound: Liquidity mining is credited to the Compound decentralized lending platform, where unique coins are released for people who provide liquidity. Nowadays, people use it to make money, and companies copy it to get customers.
• WBTC: Wrapped bitcoin is a token based on Ethereum backed 1:1 by bitcoin. Ethereum will be able to benefit from Bitcoin’s liquidity. Investing in Ethereum has gained popularity partly because investors can earn interest on their bitcoins.
• SushiSwap: The SUSHI token is the native currency of the DEX, which forks off the popular Uniswap exchange. It’s one of the top 10 Ethereum DeFi apps, according to DeFi Pulse.
• OpenSea: A marketplace for buying and selling NFTs, including Axies (described above), unstoppable domains, digital art, etc.
• Decentraland: A decentralized virtual reality game where users own virtual plots of land and can build structures such as theme parks and casinos that can be monetized.

Final words

These are some of the most famous and popular Ethereum projects. But it is important to bear in mind that not all Ethereum-based projects have been able to deliver on their promises, leading to a considerable loss for investors. So it is crucial to first ascertain the validity and fundamentals of each project before investing in any of them.