The use of Ethereum continues to increase in 2021 as the value of transactions settled on the network breaks new records.
Messari has done some research, and it looks like Ethereum has settled $926 trillion worth of transactions this quarter so far. This is an increase of 700% compared to the same time period in 2020.
The network is on track to reach $1.6 million in transactions for Q1 2021. Across the previous 12 months, Ethereum has managed to settle $2.1 trillion in transactions.
If the $1.6 prediction by Messari turns out to be true, then the quarterly settlement value of Ethereum will have increased by 1,280% compared to Q1 2020. The increase is even more notable compared to Q1 2019 – 5,000%.
Ryan Watkins, one of the researchers for Messari, argued that this information counters the opinion that Ethereum is losing clients as a result of high gas fees: “Incredible scale for a technology that critics claimed couldn’t scale.”
This increase in Ethereum’s settlement value is probably due to the incredible growth in the DeFi and the non-fungible token sector as most of it is based on Ethereum.
This very high demand on the network has made gas prices grow as well, which has pushed smaller transactions away.
Two days ago, the transaction fee for Ethereum reached the record level of $40. Ethereum managed to generate $50 million worth of transaction fees in only one day.
It was reported that over the previous week, ETH has generated $32 million on average daily fees. Meanwhile, Bitcoin has generated only $8 million during the same time period.
Because of this, many crypto influencers are calling for an early release of ETH 2.0.