One of the world’s most utilized blockchain, the Ethereum network, recently hit a milestone that got many people’s attention. The network, which currently charges gas fees averaging above $22, hit a milestone, showing the platform’s use and contribution to the DeFi projects globally. While Ethereum hit an ATH around the $1,700 range, statistics from Etherscan also revealed that the network reached a milestone of over one billion transactions on the network.
Presently, the venue faces different challenges, such as scalability issues, which the move to Ethereum 2.0 would likely address when the creators finally complete the launch. The network would move from proof of work to proof of stake, which it described as a better platform, which would support heavier transactions.
The Ethereum network hits one billion transactions
Ethereum keeps recording new all-time highs in price, and even its recent one billion transactions reach, making the network one of the most frequently used blockchain platforms. The network is relatively new, having joined the blockchain industry through the 2015 launch, which people received well.
After two years since its launch, the network started getting over 100,000 transactions every day, showing the network’s growing demand and popularity within a short while. 2018 saw the network’s first one million transactions in a day around when the asset peaked at $1,000.
After a while, the bull run lost its steam, paving the way for other market participants like the bearish market, which declined prices and reduced transactions from millions to hundreds of thousands. Things changed last year since the pandemic’s beginning, and transactions started peaking far beyond the one million mark every day, linked to the numerous DeFi projects the network saw following the rise in the decentralized financial system. The DeFi sector is currently booming, with tokens recording notable gains every day, due to the rising numbers of interested investors in the digital asset world.
DeFi grows dominant in the blockchain world
Numerous DeFi projects frequently get many participants, but one of the world’s favorites is the Aave and Uniswap, which has a high number of users. The platforms allow people to hold, swap and get high-interest rates on their various digital assets with the trouble of meddling intermediaries, usually seen in financial institutions.
The financial institutions follow several protocols that led to time wastage for platform users, leading the decentralized platform creations. Early this year, the DeFi sector reached a $23 billion market cap, showing the sector’s growing prominence, which will continue to attract more interested users.
The Ethereum network supports most DeFi projects, which led to the latter utilizing the protocol to get transactions done. Some sources claimed that the overwhelming DeFi projects caused the recent hike in transaction fees for the platform, which is presently a concern for many users.
Now, the sector has a larger set of consumers, who locked their various assets on the projects to earn interests and other attractive incentives. The Ethereum team launched one of the network’s phases, on its way to moving entirely into the proof-of-stake network, which many users anticipate, especially as traffic increases on the current network.
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