Ethereum Expects $ 1 Trillion Per Year Transaction Processing.
Ethereum (ETH) is a platform for decentralized online services based on the blockchain, working on the principle of smart contracts and cryptocurrency. ETH is the second-largest cryptocurrency in the world by market capitalization after Bitcoin (BTC), and is poised to break the $ 1 trillion mark in annual transaction processing.
Today, the volume of transactions processed by the blockchain on the Ethereum network is more than twice the volume of transactions on the Bitcoin network. Ethereum plans to increase this gap. Most industry experts attribute the skyrocketing transaction processing to a boom around the recently popular Decentralized Finance (DeFi) using the Ethereum network.
Messari, a company providing analytics, market data, research tools for cryptocurrency investors, regulators and the general public. Said that the Ethereum network processes transactions worth over $ 7 billion daily.
Compared to Bitcoin processing less than $ 3 billion per day, it’s not hard to imagine which of the two platforms will be the first to break the $ 1 trillion mark per year.
Bitcoin is estimated to be close to $ 800 billion in transaction processing per year. This figure is still less than the most successful 2018, when the Bitcoin network processed $ 849 billion in transactions. In the same 2018, the Ethereum network processed transactions worth less than $ 0.5 billion.
The excitement of the market associated with the emergence of DeFi and the proposed decentralized applications has significantly increased the use and, as a result, the volume of transactions carried out in the Ethereum blockchain network of decentralized applications, the use of the network has increased significantly.
Decentralized Finance (DeFi) – financial instruments in the form of services and applications created on the basis of the blockchain, the bulk of existing DeFi projects are presented on the Ethereum blockchain network. The priority goal of DeFi decentralized finance is to create an alternative to the usual banking sector, replacing traditional technologies of the financial system with open source protocols. Provide wider and easier access for people to decentralized lending and new investment platforms. That will allow you to receive passive income from digital assets and save on commissions on loans, deposits and transactions.