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Ethereum on track to outpace Bitcoin in settling $1 trillion transactions this year

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TL;DR

  • Ethereum transactions are so grown that the Blockchain might settle $1 trillion transactions this year.
  • The bitcoin blockchain is expected to handle up to $800 billion.

Recent information shared by Messari, a cryptocurrency market data aggregator, suggests that the Ethereum blockchain is positioned to outpace Bitcoin as the first-ever public Blockchain to settle more than $1 trillion worth of transactions this year. This results from the increasing ETH activities which were propelled by the recent fuss in the decentralized finance (DeFi) market, especially in quarter three.

Ethereum sees increased activity than Bitcoin

As per the information, the 30-day rolling daily average of Ether blockchain is more than double the record of Bitcoin. Ethereum blockchain currently sees about $7 billion daily transaction average. Whereas, the Bitcoin blockchain processes a lower transaction on a daily average of $3 billion. On this note, the Ethereum blockchain is currently the dominant settlement layer in the cryptocurrency market.

Messari’s prediction is that Ethereum will settle more than $1 trillion transactions by the end of this year if the current trend is maintained. For Bitcoin, the market aggregator also predicted that the Blockchain is on track to record up to $800 billion worth of BTC transactions at the same time, following its current daily transaction average.

DeFi is favoring the ETH blockchain

The low transactions on the Bitcoin blockchain can be attributed to the fact that the Blockchain only handles transactions denominated in the cryptocurrency. However, the transaction on the rival network isn’t completely from the ETH cryptocurrency. Most of the transactions came from DeFi smart contracts, and other related projects, for instance, ERC-20 tokens and stablecoins. 

As Ryan Watkins from Messari explained, ERC-20 stablecoins like MakerDAO’s DAI also contributed to the growth of the Ethereum blockchain. The stablecoin noted increased demand and transactions in DeFi, which shot up the supply to over 600 percent. This also includes Tether (USDT), which is the most-traded stablecoin.

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Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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