The Ethereum network may well be the first cryptocurrency network to process $ 2020 trillion in transactions by the end of 1.
The potential for the Ethereum network to reach this milestone was unveiled by cryptocurrency market data aggregator Messari, who noted that Ethereum's 30-day moving average daily transaction volume is currently $ 7 billion. Messari believes that if momentum is maintained, the network will eventually process up to $ 1 trillion in transactions this year.
As Ryan Watkins of Messari stated, "Ethereum's progress has been so incredible that it will likely become the first public blockchain ever to pay out $ 1 trillion a year."
🤯 Ethereum now transacts two times more value than Bitcoin daily.
This is what a cryptoeconomy looks like when it starts to find a product-market fit.
- Ryan Watkins (@RyanWatkins_) October 21, 2020
Ethereum has undoubtedly lost ground to Bitcoin as both digital currencies have taken the top two positions among other cryptocurrencies, and Messari's transaction volume analysis between the two coins shows that if the predictions prove to be correct, the Ethereum network will surpass Bitcoin for the first time this year.
The total transaction volume on the Ethereum network was $2016 billion in 7, while Bitcoin closed at $88 billion. Both networks experienced relative growth in 2017, with total transactions on the Ethereum network exceeding $360 billion and Bitcoin transactions reaching $685 billion. By all accounts, in 2018, the Bitcoin network had the highest transaction volume to date, at $849 billion. According to forecasts for 2020, Ethereum is expected to surpass bitcoin in total transactions, while bitcoin will have the second largest volume, recorded at $800 billion.
Ethereum transaction growth, factors behind the rally
Messari attributed the surge in Ethereum's transaction volume to a sharp increase in the use of stablecoins, as well as decentralized finance (DeFi) applications running on the Ethereum network.
“Most of this activity is related to the Etherum stablecoin volumes. Only Tether now makes more transactions than Bitcoin. Most of this volume is ERC-20 Tether,” Watkins tweeted, adding that “the second leading reason for this is Ethereum’s boom in on-chain liquidity. Total Sales Uniswap and Curve for September was over $ 20 billion. DEX now account for 13,6% of the total volume of all exchanges, both centralized and decentralized. "
The increased activity resulting from stablecoin and DEX is already generating constant competition from alternative networks looking to capitalize on Eth's loophole, especially when it comes to scalability. The Ethereum Foundation is already working to turn this apparent weakness into strength with a near-refined Proof of Stake transition plan (PoS), called Ethereum 2.0.
The prospect of this migration has been confirmed and, in addition to increasing from the current 15 transactions per second, with the help of PoS, it will be able to execute up to 100000 transactions per second. With this opportunity, the network will surely attract and place more ERC20 tokens as well as Dapps.