Ethereum network processing more than double the transaction volume of Bitcoin, and is on-course to process $1 trillion this year
According to data compiled from Messari, during Q3 2020, the DeFi market looks like a boom as the Ethereum network processes twice the daily transaction volume of Bitcoin. The 30-day rotating average daily average for Ethereum transaction volume is currently $ 7 billion, with Bitcoin processing less than $ 3 billion.
There are two key developments over the past year that made this all possible: stablecoins and DeFi.
The two provided a strong foundation for real financial activity to take place on Ethereum.https://t.co/O7AFoiV7Nn
— Ryan Watkins (@RyanWatkins_) October 21, 2020
Ethereum network processing more than double the transaction volume of Bitcoin
According to Messari, ETH will become the first public blockchain to settle $ 1 trillion transfers in a year. ETH’s previous strongest year against Bitcoin was 2018 when it handled a volume of half a billion, which was 59% of Bitcoin’s $ 849 million in that year. Bitcoin is on track for its second strong year after 2018, expected to process $ 800 million.
Annual transaction value of Bitcoin and Ethereum | Source: Messari
With the DeFi bubble mostly taking place on Ethereum-powered smart contracts, the Ethereum network now handles the entire field’s volume. At the same time, Bitcoin largely represents the transfer of value in BTC.
Ryan Watkins from Messari said:
“Much of Ethereum’s volume spike to increased ERC-20 stablecoin volumes, with the majority of Tether 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 that on-chain liquidity is booming from DEXs, with Uniswap and Curve generating more than $ 20 billion in volume combined in September.
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 their treasuries to build a parallel DeFi sector throughout the end of 2020 and beyond.”
Crypto collateral locked in DeFi protocols has surged to an all-time high of over $12 billion
According to DeFi Pulse, the number of crypto collateral locked on various DeFi protocols has reached an all-time high of $ 12.3 billion. In just 48 hours, more than a billion dollars were added to the total USD value, although the exact figures differ on other analytical platforms like Coingecko and Coinmarketcap.
TVL on Coingecko’s tracker reports it at around $ 11.6 billion. The surge after Bitcoin hit a new 2020 high of $ 13,200 on October 21, spurred by PayPal.
According to Coingecko, the total DeF market cap is $ 14.3 billion. That’s a $ 2 billion increase in DeFi market capitalization over the past 48 hours.
Despite a month that saw most tokens fall 50% or more, #DeFi is *still* at ATHs with its most important indicators:
– TVL: $12.41B
– ERC20 Stablecoins: $14B
Don’t listen to the degens who burned out. Phase 2 of this #DeFi bull market will make this summer look like nothing.
— Spencer Noon (@spencernoon) October 22, 2020
News of PayPal and the general resurgence in the crypto market have led to many DeFi coins making solid profits over the past 24 hours including Airswap, Aave, Synthetix and Curve. One factor driving TVL is the rise in the price of DeFi tokens used for betting, including Ethereum, as many liquidity pools are based on ETH. Over the past 48 hours, Ethereum’s price has risen 12% to reach a six-week high of $ 415.
Source: DeFi Pulse
But according to Messari’s DeFi Returns Index, which measures the performance of the top 46 DeFi assets, many DeFi tokens are still down more than 40% in the past month. The biggest losers include tokens from Meta, bZx, Augur, SushiSwap, Swerve, and Curve.
You can see the Ethereum price here.
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