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

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

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

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

Ethereum’s previous strongest calendar year compared to Bitcoin was 2018, when it processed half a billion volume, or 59% of Bitcoin’s $ 849 million that year.

Bitcoin is on track for its second strongest year after 2018, which is expected to process $ 800 million.

However, it is not a direct comparison between the two blockchains. With the DeFi bubble largely underway on Ethereum-based smart contracts, the Ethereum network now processes the volume of an entire industry, while Bitcoin largely represents BTC-denominated value transfers.

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

Watkins also notes the boom in on-chain liquidity from decentralized exchanges, with Uniswap and Curve generating over $ 20 billion in combined volumes in September. DEXs now represent more than 13.6% of total trading volumes.

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

“Look for all aspiring ETH Killers to continue emptying their treasures to build a parallel DeFi industry throughout the end of 2020 and beyond.”

In August, Chris Burniske, a partner of PlaceHolder Capital, said that Ethereum and Bitcoin are challenging each other to reach the former. $ 1 trillion market capitalization in cryptocurrency.