The number of daily transactions processed by a cryptocurrency network often tells a special tale. In Ethereum’s case, the current daily transaction rate is approaching levels not seen since early 2018. A very interesting turn of events that shows excitement within this particular ecosystem is picking up again.
Ethereum Transaction Growth Until 2018
Any financial system, whether it is a cryptocurrency or otherwise, will hardly ever note the same number of transactions every single day. Even with payment cards, there will be highs and lows to be noted every week. Cryptocurrencies are not all that different. This applies specifically to networks that aren’t Bitcoin, as they tend to see more ups and downs in overall transaction volume.
For Ethereum, the ICO craze of 2017 and 2018 had created a vast influx of network transfers. That was to be expected, as the majority of initial coin offerings have taken place on the Ethereum network during that time. This is part of the reason why ERC-20 tokens are still very popular today.
Once this ICO craze came to an end, the number of Ethereum transfers began dropping off quickly. Going from a peak of over 1.3 million transfers to under 500,000 in a year made some people worry. Thankfully, the numbers held fast at this level, before eventually picking up again.
Minor peaks were noted in Q2 of 2019. However, a second drop in transactions occurred shortly after, primarily due to an extended “crypto winter” affecting all cryptocurrencies since early 2018.
Once things began to improve in early 2020, the number of network transfers began picking up again across all major blockchains. That is one of the more interesting aspects of cryptocurrency. THere will always be network activity, and certain patterns tend to repeat themselves.
Surpassing 1 Million Daily Transactions
Over the past few months, there has been a strong focus on the Ethereum ecosystem. Not just because of its decentralized apps, but primarily due to new financial services launching on this blockchain.
Often referred to as DeFi, or decentralized finance, these solutions generate ample Ethereum transaction volume. They also tend to raise transaction fees on Ethereum, although those figures have been kept in check for the most part.
Currently, the daily Ethereum transaction count remains well above 1 million. Just yesterday, a total of 1,261,456 transfers were recorded. These figures also represent an increase of 129,635 new addresses seen on the blockchain.
All of these developments confirm that Ethereum is in a very good place right now. The upcoming launch of Ethereum 2.0 will undoubtedly spark some excitement among community members as well.