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Ethereum
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July 16, 2021

Ethereum Could Settle $8,000,000,000,000 in Transactions This Year – Here’s What’s Behind the Surge

By Daily Hodl Staff

New numbers from cryptocurrency data firm Messari show the Ethereum network settled $2.5 trillion in transactions in the second quarter of 2021.

Messari senior research analyst Ryan Watkin says the number suggests that the blockchain is now on track to hit $8 trillion in transactions by the end of the year.

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“In Q2 2021 Ethereum settled $2.5 trillion in transactions. This represents +65% QoQ and +1,490% YoY, and puts Ethereum on pace to settle $8 trillion in 2021.”

Source: Messari

Watkins says the surge is primarily due to a boom in decentralized finance (DeFi) and stablecoins.

Between April and June, decentralized exchange (DEX) volumes reached $405 billion, marking an increase of 117x year-over-year and an 83% increase from the first-quarter numbers. Outstanding loans in lending platforms also increased by 44% over the quarter, according to Messari’s Q2 2021 DeFi Review.

Messari adds that the rollout of layer-2 scaling solutions on Ethereum will immensely scale DeFi sectors.

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“The most anticipated launches of these solutions are optimistic rollups which allow thousands of transactions to be bundled into a single rollup block.”

Meanwhile, stablecoin market capitalization reached $107 billion in Q2, up by 803% year-over-year and 70% since Q1. The digital assets facilitated $1.7 trillion in transactions throughout the quarter, representing an increase of 1,090% year-over-year and 59% since Q1.

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