For many years Ethereum Blockchain Network remained overpopulated with active users and increased numbers of transactions. Ethereum, which went live only in 2015, soon made its mark in the crypto-industry and became the second largest after Bitcoin.
In CoinDesk’s recent report it is suggested that for 2020, Ethereum Network has conducted transactions worth over US$ 1 Trillion. The number of transactions and their values transacted through Ethereum are double the size of Bitcoin, said the report.
CoinDesk’s report also disclosed various factors that had helped Ethereum Network to take down Bitcoin in terms of transactions. The report suggested that the prime contributor to Ethereum’s phenomenal growth was the never-ending trend of Decentralized Finance (DeFi). DeFi had enabled Ethereum to process an increased number of transactions per day which were more than twice the number of transactions carried out by Bitcoin per day.
As per Messari, an aggregator of the crypto industry, Ethereum processed US$7 Billion transactions per month till September this year. On the other hand, Bitcoin’s transaction value per month was US$ 3 Billion which was less than half of Ethereum’s.
Messari suggested that if Ethereum maintains this trend then till the end of 2020, it will put Ehtereum in the driving seat. Ethereum will soon become the first blockchain to host US$ 1 trillion worth of transactions per year, added Messari. Once this achievement is acquired, Ethereum will then ensure to keep this rally for future years as well. In this way there will be healthy competition between Ethereum and Bitcoin, Messari noted.
However many suggested that the boom in transaction value for Ethereum is due to DeFi frenzy. On the other hand Bitcoin’ network transactions are entirely based on BTC. They said that whenever this DeFi frenzy will end, the story will be different. In that story Bitcoin will regain its crown of having a higher number of transactional value over Ethereum, they said.
Messari also suggested that the year 2021 will be crucial for both, Ethereum and Bitcoin. The year 2021 will redefine the course of war between the two platforms.
However, currently it seems that Ethereum is taking a lead over Bitcoin in this race.