Huobi Launches EOS-Based Decentralized Cryptocurrency Exchange in Beta

Francisco Memoria

Huobi, a Singapore-based cryptocurrency exchange that’s often among the top exchanges by trading volume, has recently launched a beta version of its EOS-based decentralized cryptocurrency exchange, Huobi EOS.

The decentralized exchange (DEX) is starting off with three trading pairs: EOS/BTC, EOS/ETH, and EOS/USDT, and will add more in the future after receiving feedback from its users and ensuring the new pairs go through a “review and screening” process.

As CryptoGlobe covered Huobi Pool, the company’s cryptocurrency mining subsidiary, announced it was going to launch an exchange that used EOS as a base currency in December of last year. At the time, Huobi Pool’s CEO Cao Fei stated:

As an EOS super node, Huobi Pool has placed its ecological development high on its list of priorities. Launching this EOS exchange is simply the next logical step in our support.

The company’s goal is to reportedly facilitate peer-to-peer value exchanges while supporting “high-volume blockchain-based trading.” Huobi, which recently saw its US strategic partner HBUS rebrand, has informed its users Huobi EOS is still in its beta stage, and that they’ll need to authorize it and activate their accounts before being able to withdraw from the platform.

The firm chose EOS as “sophisticated traders are increasingly looking for a broader range of tools,” the Finance Magnates reports, quoting Huobi’s CEO Livio Weng speaking at the Cryptofrontiers conference in New York.

EOS is notably a rather controversial cryptocurrency. It was launched by Block.one after a year-long ICO that raised $4 billion, and in the beginning faced various governance problems over the power its 21 block producers (BPs) had on the blockchain.

Recently, a report suggested that over 400,000 EOS tokens have been stolen by hackers, and that over 200,000 accounts on the cryptocurrency’s blockchain are dormant. At press time, according to CryptoCompare data, EOS is up 0.4% in the last 24-hour period, as it’s trading at $2.46.

Ethereum Was Behind 85% of Dapps' $12 Billion Volume in Q2 2020

The total transaction volumes of decentralized applications (dapps) in the cryptocurrency space hit $12 billion in the second quarter of this year, rising by $4.5 billion compared to the first quarter. Etheruem dapps accounted for 85% of the volume.

According to DappRadar’s Industry Review report, there are more than 70,000 active wallets across 13 different blockchains interacting with the cryptocurrency space. The top blockchains were EOS, TRON, and Ethereum, with the latter representing $10.2 billion of the $12 billion volume seen in Q2.

Ethereum’s large transaction volume was partly fuelled by Compound and the launch of the COMP token, which led to a “yield farming” trend, in which users were interacting with the protocol as much as possible to receive COMP tokens. Compound saw $1.2 billion move through it.

The yield farming trend saw Ethereum gas prices and transaction fees increase, which according to the report did not stop Ethereum dapps from thriving in general. It did, however, contribute to an 80% drop quarter-on-quarter for ETH gaming dapps, as high gas prices are “killing” their activities on the cryptocurrency’s network.

Despite Ethereum’s growth, EOS and TRON (TRX) dapps have also seen their activity increase in the second quarter of the year. According to the report in only three months, TRON’s transaction volumes on decentralized applications surged by over 17,200%.

The rise was largely attributed to Oikos.cash, a TRON-based version of the Compound lending protocol.  While TRON’s DeFi growth has been notably, DappRadar pointed out that most dapps on its blockchain are still in the “gambling” and “high risk” categories.

The EOS blockchain has still been enduring the effects of the EIDOS token airdrop, which put the network into “congestion mode.” The airdrop clogged the network and as a result, from 2019 to 2020 wallet activity on decentralized applications dropped 53%.

So far this year, $1.9 billion have been transacted on decentralized applications using the EOS blockchain, thanks to two dapps: Crypto Dynasty and Upland. DappRadar’s report also shows that two other blockchains are growing thanks to gambling dapps: WAX and ThunderCore.

Featured image via Pixabay.