Summary:
- The Ethereum network is on track to liquidate $ 1 trillion this year
- This amount over a period of one year will be the first for any public blockchain
- Ethereum currently transacts twice as much value as Bitcoin on a daily basis
- This is due to the rise in stablecoins on ETH and the 2020 DeFi boom
The Ethereum (ETH) network is well on its way to achieving what no other audience has achieved by transacting $ 1 trillion in a year. This means that Ethereum has eclipsed Bitcoin in terms of the platform of choice for on-chain payments and transactions. This feat was captured by the Messari team and later highlighted by the Unfolded team via the following tweet.
Ethereum is set to become the first ever public blockchain to liquidate $ 1 trillion in a year @MessariCrypto pic.twitter.com/xCYmaz0Cc8
– explained. (@cryptounfolded) 23 October 2020
Ethereum transacts twice as many as Bitcoin
The rise of Ethereum as a platform of choice for payments is due to the rise of stablecoins such as Tether (USDT) and USDC, which are a fan favorite of DeFi farmers around the world. The DeFi boom that garnered steam in the third quarter of this year helped make Ethereum the platform of choice for many cryptocurrency users, with the result that Ethereum’s transaction volume eclipsed that of Bitcoin by a factor of two. This fact was highlighted by Ryan Watkins of Messari via the following tweet.
🤯 Ethereum now transacts twice as much value as Bitcoin every day.
This is what a crypto economy looks like when it begins to find the product market suitability.
1 / pic.twitter.com/mjXJkZTddU
– Ryan Watkins (@RyanWatkins_) 21 October 2020
Furthermore, decentralized exchanges on Ethereum have further helped the network to transact more per day than Bitcoin. Ryan Watkins explains this further as follows.
The second main reason for this is Ethereum’s boom in on-chain liquidity. Uniswap and Curve recorded a combined volume of over $ 20 billion for September. DEXs now represent 13.6% of the total volumes of all exchanges both centralized and decentralized.
Conclusion
In summary, the Ethereum network looks set to be the first public blockchain to liquidate a total of $ 1 trillion over a one-year period. The surge in Ethereum’s transaction activity was due to the rise of stablecoins such as Tether, as well as the DeFi boom that kicked off in the third quarter of this year.
Within the DeFi realm, decentralized exchanges like Uniswap have also helped increase the volume of transactions on Ethereum.
If the last few months are an example of what the future holds for Ethereum, $ 1 trillion in a year could be the tip of the iceberg as the crypto-verse becomes the benchmark for alternative investment and banking solutions as seen with PayPal which embraces crypto.
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