Connect with us

Ethereum

Ethereum set to become first blockchain to settle $1 trillion in one year

Published

on


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

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

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

Ethereum’s previous strongest calendar year relative to Bitcoin was 2018, when it processed half a billion in volume, which was 59% as much as Bitcoin’s $849 million that year.

Bitcoin is on-pace for its second-strongest year behind 2018, projected to process $800 million.

Yearly transaction value for Bitcoin and Ethereum: Messari

It’s not a straightforward comparison between the two blockchains however. With the DeFi bubble largely taking place on top of Ethereum-powered smart contracts, the Ethereum network now processes the volume of an entire sector, while Bitcoin largely represents transfers of value denominated in BTC.

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

Watkins also notes booming on-chain liquidity from decentralized exchanges (DEXs), with Uniswap and Curve generating more than $20 billion in volume combined during September. DEXs now represent more than 13.6% of total exchange volumes.

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

“Look for all would-be ETH Killers to continue to empty out their treasuries to build a parallel DeFi sector throughout the end of 2020 and beyond.”

In August, Chris Burniske, a partner at PlaceHolder Capital, asserted that Ethereum and Bitcoin are racing each other to reach the first $1 trillion market cap in crypto.





Source link

Ethereum

Ethereum London upgrade launches on testnet as 100K staked in a day on Eth2

Published

on

By



Ethereum’s forthcoming London upgrade, containing the highly-anticipated Ethereum Improvement Proposal (EIP) 1559, has been deployed on the Ropsten testnet.

Following the June 24 launch on Ropsten, London is now expected to progress through Ethereum’s Goerli, Rinkeby, and Kovan testnets at roughly weekly intervals — from which point the Ethereum community expects a date for mainnet deployment to firm up.

The new upgrade will see transaction fees burned. According EIP-1559 tracking website, Watch the Burn, roughly 88,500 testnet ETH nominally worth $177.6 million has been burned on Ropsten over the day since London’s deployment.

The high rate of Ether being burned on Ropsten has reignited discussion regarding whether EIP-1559 will render Ethereum deflationary — where more ETH is destroyed than new supply enters into circulation — and what this could mean for Ethereum’s price moving forward.

However, EIP-1559 is not the only upgrade that the community is looking forward to from London, with David Mihal of CryptoFees describing EIP-3074 as “fixing one of Ethereum’s most overlooked security issues” to do with approvals.

Related: A London tour guide: What the EIP-1559 hard fork promises for Ethereum

Coincidentally or not, crypto data aggregator, CryptoQuant, identified that 100,000 Ether had been deposited into Eth2’s staking contract around the same time as the launch, worth roughly $200 million.

CryptoQuant also noted that more than 5% of ETH’s supply is currently locked in staking worth approximately $11.75 billion.