The decentralized financial boom in the third quarter saw the Ethereum (ETH) network process more than twice the daily volume of Bitcoin (BTC) transactions.
According to Messari cryptocurrency market data aggregator, the average Ethereum transaction volume for 30 days is currently $ 7 billion, with Bitcoin processing less than $ 3 billion.
If the current trend continues, Messari predicts that Ethereum will be the first public blockchain to generate $ 1 trillion in conversions in a calendar year.
Ethereum’s most successful previous calendar year in relation to Bitcoin was 2018, when it processed half a billion dollars, which is 59% more than Bitcoin’s $ 849 million that year.
Bitcoin is nearing its second largest year after 2018 and is expected to process $ 800 million.
Annual transaction cost of Bitcoin and Ethereum: Messari
However, this is not an easy comparison between these two blockchains. Since the DeFi bubble often occurs on top of Ethereum-based smart contracts, the Ethereum network now handles the size of the entire sector, while Bitcoin is mainly BTC-denominated value transfers.
Messaris Ryan Watkins attributed much of the increase in Ethereum’s volume to the increase in stable ERC-20 volumes, with the majority of Tether (USDT) transactions currently occurring on Ethereum, providing a return-driven demand that drives MakerDAO’s stable Dai offering by more than 600%.
Watkins also points to a liquidity boom in decentralized exchanges, with Uniswap and Curve bringing in more than $ 20 billion in total during the month of September. The DEX currently accounts for more than 13.6% of the total trading volume.
Nevertheless, Messari predicts that “the next twelve months may define the platform wars” in cryptocurrencies, citing the continuing rise in Ethereum fees as a problem that competition blockchains will try to solve, along with the “emergence of parallel DeFi ecosystems.”
“Expect all future ETH killers to continue emptying their coffers to build a parallel DeFi sector through 2020 and beyond.”
In August, Chris Burniske, a partner at PlaceHolder Capital, announced that Ethereum and Bitcoin were pushing each other toward the first trillion dollars in cryptocurrency market value.