It has been a busy week for the Ethereum ecosystem, and the DeFi madness confirms more than anything else that ETH has dominated the crypto market in many ways since its foundation.
According to the metrics of the ETH browser Etherscan, the network has reached a new historic all-time high of 1,406,000 daily transactions for the first time since Ethereum was founded. This is the highest number of transactions ever processed by the network.
If you want to find out more details about Ethereum and how many ETH daily transactions are currently being done, download for free the Born2Invest mobile app. Our companion app brings you the latest business news in the crypto sector and not only, for you to stay on top of the market.
DeFi catapults Ethereum to new all-time high
Decentralized finance is a two-sided hardship. While some see a large bubble and little real use, others see DeFi as the revolution of the classic financial system and an extremely lucrative investment opportunity.
The new record registered by Ethereum is one of the results caused by the DeFi madness of the last weeks and months. The milestone shows the inevitable growth process the network has gone through over the last two years. On January 4th, 2018, 1,350,000 transactions were the network’s all-time high according to Etherscan.
DeFi has helped to strengthen Ethereum’s dominance since it has become an important part of the crypto sector. Every week, the total value of ETH and USD lured in DeFi protocols increases rapidly. In August, the value reached $9 billion, and at the time of writing the value is approaching $10 billion (currently $9.58 billion). The listing of DeFi tokens by large crypto exchanges served as an impulse that led to this rise.
Binance was one of the first exchanges to jump on Ethereum’s DeFi train. The Ontology Token (ONT) was launched on Binance in April. In June, Coinbase followed suit with Compound (COMP), one of the most discussed DeFi tokens. The listing excited the market in the first weeks with a 100% increase. Okex then also joined the DeFi party, taking eight of the most popular tokens on its exchange. There are now 27 of them.
ETH 2.0 is urgently needed
The transformation of the Ethereum ecosystem through the transition to version 2.0 is still urgently needed, especially at this time when gas charges are skyrocketing. The founder of Binance, Changpeng Zhao a.k.a. CZ is also calling for a solution as soon as possible, as exchanges and users are now paying double what used to be the standard transaction fee.
Many leading figures in the crypto sector are now warning against too much euphoria in the market, as many DeFi projects have little or no intrinsic value. For some of these industry players, DeFi is still a bubble. Nevertheless, DeFi can still maintain its momentum and while the whole world is watching, it is clear that the future of decentralized finance through Ethereum has a lot to offer.
How could investments in Bitcoin increase the price of ETH
Some analysts specialized in the crypto sector said that more and more investors will buy Bitcoin in the future and use WBTC to to use DeFi services that payout interest in WBTC. The consequence of this is of course an increased use of the Ethereum blockchain, from which ETH in turn benefits in terms of price.
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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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