Ethereum has witnessed impressive growth not just in terms of its price but also with regards to the number of transactions on its network. As one of the leading cryptocurrencies, Ethereum’s daily transaction volume has seen a parabolic rise in its figures.
As noted by Messari’s Ryan Watkins, the Ethereum network was currently settling $12 billion in transactions daily. Bitcoin, on the other hand, records a daily transaction volume of 9.3 billion, approximately $3 billion more than Bitcoin.
The above figure for Ethereum does not include ERC-20s to prevent double-counting from decentralized exchanges [DEXs]. However, Bitcoin’s figures include USDT on Omni. Despite this, Ethereum’s daily transaction volume has surpassed that of Bitcoin by a significant margin.
This can be attributed to the fact that stablecoins and decentralized finance [DeFi] space have been witnessing massive traction especially since mid-2020 which has led the largest altcoin to settle value a lot more than Bitcoin on a daily basis.
Along the same line, CoinMetrics Co-founder, Jacob Franek noted that Ethereum generates more fees than Bitcoin and settles more value. He further went on to explain that this was a good sign since cumulative fees are the most direct measure of aggregate willingness to pay for block space, which indicated a trend of rising demand. He also added,
“Ethereum has the most valuable block space in crypto now. Would it be better if individual tx fees were lower? Yes. That will come with L2 and other scaling efforts.”
Ethereum Still Up by 15% off Its ATH
The premier altcoin has endured a prolonged period of consolidation that started last week. This, in turn, has facilitated the ETH market to flush out weak hands. At the time of writing, the crypto-asset was in the middle of a fresh rally while Bitcoin continued to take control of $40k.
The reason why Ether is expected to undergo a continued strong price momentum triggered is primarily due to the launch of ETH 2.0 and also the imminent rollout of CME futures next month. In fact, the 2.0 is expected to potentially bolster the DeFi economy in general as the space as a whole will benefit from a substantial decline in transaction fees as well as less congestion.