It looks like Ethereum is reaching new milestones. Data from Messari shows it has processed over $ 6 trillion in transactions in the past 12 months, up 369% from 2020.
Unsurprisingly, with this rapid surge in usage, the price of Ethereum has also increased significantly.
Ethereum has processed $ 6.2 trillion in transactions | Source: Messari
The third quarter in particular was the strongest growth period for the Ethereum network, with $ 1.5 trillion in transactions. Stablecoins are also an important part of trading volume, which is not surprising given their flexibility to use.
Ether is currently trading at $ 3,430 and is likely to hold well above $ 3,000. In terms of Ethereum’s performance and presence, it outperforms Bitcoin by 43 times its fee income.
Ether price chart | Source: Tradingview
The Ethereum network is currently being updated to ETH 2.0, bringing with it a transition to Proof-of-Stake (POS) and improvements in scalability. Moving to POS will greatly increase the usability of the network, even though many competitors like Cardano have recently introduced smart contracts.
ETH 2.0 still has a way to release all of its features as the development team releases upgrades in phases. The benefits are emerging, however, especially with the advent of DeFi and NFT products.
NFT and DeFi are driving Ethereum’s growth
Ethereum is getting more mature as both companies and independent development teams adopt its smart contracts. The emergence of scalability solutions, such as those offered by Polygon, has made it much easier to use.
The two factors driving the growth of the Ethereum network are NFT and DeFi. NFT, in particular, is showing remarkable growth, attracting large corporations, brands, and celebrities. The versatility of smart contracts has already manifested itself in these two areas.
In the long run, gas charges and network congestion have stifled the market. While this is far from being fully resolved, it has indeed made a huge leap forward. As Ethereum transactions continue to grow and more use cases come in, the need for scalability will increase.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
According to BeinCrypto