The cryptocurrency community has many thoughts and ideas on whether Ethereum is a good network. Statistics by Messari confirm there is plenty of overall activity. DeFi and stablecoins fuel the ongoing growth of this ecosystem. It makes one wonder how things will look after the ETH 2.0 upgrade.
Ethereum Activity Picks up Again
Anyone can measure the overall on-chain activity on Ethereum with relative ease. However, there are different metrics to look at to form a bigger picture. One crucial aspect is the transaction settlement volume. As the second-largest crypto ecosystem by market cap, a solid year-over-year increase needs to be the number one objective.
It would appear that Ethereum has nailed that aspect down well. In the past quarter alone, Ethereum settled #$2.5 trillion in transactions. A steep amount for a network often criticized over its congestion and high fees. Even so, people are willing to use this blockchain for particular purposes, which is intriguing to behold. Despite its shortcomings, this blockchain is home to many innovative products and concepts.
Assuming this rate of settlement increases, Ethereum will surpass $8 trillion throughout 2021. A more than acceptable amount of network activity. With the upcoming London hard fork and ETH 2.0 upgrade, settlements will become faster and cheaper. That will, in turn, push the overall network activity higher. That may not necessarily result in more transaction settlement, though.
What is even more interesting is how the settlement is 65% higher compared to Q1 2021. That means that, despite the prices going down, Ethereum remains a go-to blockchain for overall activity. There are many options to explore as part of this ecosystem, which will continue to contribute to Ethereum’s broad appeal and success.
DeFi And Stablecoins Fuel Growth
It is not hard to see why Ethereum remains such a popular blockchain. Although it isn’t the only ecosystem with smart contracts, it is the biggest “hub”. More specifically, decentralized finance is the most significant contributor to Ethereum activity. Other blockchains offer similar solutions, yet their volumes are well off the mark. As popular as Binance Smart Chain is, its DeFi solutions and dApps lack the volume to rival Ethereum’s dominance.
Another contributing factor are the stablecoins. Popular assets such as USDT, SUDC, and others are all accessible on Ethereum. The minting and destroying of these assets invoke transaction fees, attributing to the overall settlement volume. Without a booming DeFi and stablecoin ecosystem, things could look very different for Ethereum. However, for now, its growth remains fairly impressive.