Home Blockchain Ethereum set to become first blockchain to settle $1 trillion in one...

Ethereum set to become first blockchain to settle $1 trillion in one year


The third-quarter decentralized finance (DeFi) boom has resulted in the Ethereum (ETH) network processing more than twice the daily transaction volume of Bitcoin (BTC).

According to crypto market data aggregator Messari, the 30-day rolling daily average for Ethereum transaction volume is currently $7 billion, with Bitcoin processing less than $3 billion.

If the current trend continues, Messari predicts Ethereum will become the first public blockchain to settle $1 trillion in transfers over a calendar year.

Ethereum’s previous strongest calendar year relative to Bitcoin was 2018, when it processed half a billion in volume, which was 59% as much as Bitcoin’s $849 million that year.

Bitcoin is on-pace for its second-strongest year behind 2018, projected to process $800 million.

Yearly transaction value for Bitcoin and Ethereum: Messari

It’s not a straightforward comparison between the two blockchains however. With the DeFi bubble largely taking place on top of Ethereum-powered smart contracts, the Ethereum network now processes the volume of an entire sector, while Bitcoin largely represents transfers of value denominated in BTC.

Messari’s Ryan Watkins attributes much of Ethereum’s volume spike to increased ERC-20 stablecoin volumes, with the majority of Tether (USDT) transactions now taking place on Ethereum and yield farming-driven demand pushing supply growth of more than 600% for MakerDAO’s DAI stablecoin.

Watkins also notes booming on-chain liquidity from decentralized exchanges (DEXs), with Uniswap and Curve generating more than $20 billion in volume combined during September. DEXs now represent more than 13.6% of total exchange volumes.

However, Messari predicts “the next twelve months could come to define the platform wars” in crypto, noting Ethereum’s ongoing high fees as a problem that rival blockchains will seek to solve, alongside “the rise of parallel DeFi ecosystems.”

“Look for all would-be ETH Killers to continue to empty out their treasuries to build a parallel DeFi sector throughout the end of 2020 and beyond.”

In August, Chris Burniske, a partner at PlaceHolder Capital, asserted that Ethereum and Bitcoin are racing each other to reach the first $1 trillion market cap in crypto.





Read orginal here

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
472FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,554FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.20
GBP
1.33
CHF
1.10
NOK
0.11
JPY
0.01
CAD
0.77
AUD
0.74

Most Popular

Yield farming is a fad, but DeFi promises to change the way we interact with money

As the COVID-19 outbreak wreaks havoc on the United States’ economy and abroad, investors grapple with a second economic downturn in just over...

Guggenheim Partners prepares to dip investment fund’s toes into Bitcoin

An SEC filing on Friday indicates that the next Wall Street institution to take a public position in Bitcoin may also be among the...
bitcoin
Bitcoin (BTC) $ 18,107.05
ethereum
Ethereum (ETH) $ 550.73
ripple
XRP (XRP) $ 0.622193
tether
Tether (USDT) $ 0.999755
bitcoin-cash
Bitcoin Cash (BCH) $ 281.08
bitcoin-cash-sv
Bitcoin SV (BSV) $ 168.37
litecoin
Litecoin (LTC) $ 76.12
eos
EOS (EOS) $ 3.01
binancecoin
Binance Coin (BNB) $ 29.69
okb
OKB (OKB) $ 5.30
tezos
Tezos (XTZ) $ 2.37
leo-token
LEO Token (LEO) $ 1.34
cardano
Cardano (ADA) $ 0.160991
monero
Monero (XMR) $ 123.53
stellar
Stellar (XLM) $ 0.196068
chainlink
Chainlink (LINK) $ 13.23
huobi-token
Huobi Token (HT) $ 4.09
tron
TRON (TRX) $ 0.030980
usd-coin
USD Coin (USDC) $ 0.998359
dash
Dash (DASH) $ 106.99
neo
NEO (NEO) $ 17.52
iota
IOTA (MIOTA) $ 0.349096
nem
NEM (XEM) $ 0.178777
zcash
Zcash (ZEC) $ 74.64
maker
Maker (MKR) $ 537.61
paxos-standard
Paxos Standard (PAX) $ 0.999462
ethereum-classic
Ethereum Classic (ETC) $ 6.37
vechain
VeChain (VET) $ 0.015678
true-usd
TrueUSD (TUSD) $ 0.998048
ftx-token
FTX Token (FTT) $ 4.20
kucoin-shares
KuCoin Shares (KCS) $ 0.794662
waves
Waves (WAVES) $ 6.67