Bitcoin

Ethereum is the first blockchain to set up $ 1 trillion in a year

The rise of Decentralized funding (DeFi) in the third quarter resulted in the Ethereum (ETH) network processing more than double the daily transaction volume of Bitcoin (BTC).

According to the crypto market data aggregator Messari The moving 30-day daily average for the Ethereum transaction volume is currently at USD 7,000 million, while Bitcoin processes less than $ 3 billion.

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

Ethereum is the first blockchain to set up $ 1 trillion in a year
Ethereum is the first blockchain to set up $ 1 trillion in a year

The strongest previous calendar year of Ethereum compared to Bitcoin was 2018, When the $ 500 million volume was processed, that was 59% of the $ 849 million in Bitcoin that year.

Bitcoin is about to enter its second strongest year after 2018, when it is expected to process $ 800 million.

The annual transaction value for Bitcoin and Ethereum: Messari

However, no direct comparison between the two blockchains. As the DeFi bubble occurs, for the most part, on top of smart contracts that are powered by Ethereum, this network now processes the volume of an entire sector, while Bitcoin mainly represents value transfers denominated in BTC.

Messari’s Ryan Watkins attributes much of Ethereum’s volume surge to the ERC-20’s increase in stable coin volume;; a majority of Tether (USDT) transactions are now happening on Ethereum, creating demand due to income farming and allowing over 600% supply growth for MakerDAO’s DAI stablecoin.

Watkins also notes the increase in liquidity in the DEX (Decentralized Exchange) chain; Uniswap and Curve achieved a total volume of more than $ 20 billion in September. DEXs now make up more than 13.6% of the total exchange volume.

However, Messari predicts that “the next twelve months could come to define platform wars” in the crypto spaceRecalling the current high fees for Ethereum as a problem competing blockchains will try to solve, along with “the rise of parallel DeFi ecosystems”.

“Try to get all potential ETH killers to keep emptying their treasures in order to build a parallel DeFi sector by the end of 2020 and beyond.”

In August, Chris Burniske, partner at PlaceHolder Capital, stated this Ethereum and Bitcoin compete with each other to achieve the first market cap of $ 1 trillion in cryptocurrency.

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