Overview of courses from Bitcoin and Altcoin like Ripple, Litecoin and Ethereum
The boom in decentralized finance (DeFi) in the third quarter has resulted in the Ethereum (ETH) network processing more than twice the daily transaction volume of Bitcoin (BTC).
According to the crypto-market data aggregator Messari, the rolling 30-day daily average of Ethereum’s transaction volume is currently $7 billion, with Bitcoin Code processing less than $3 billion.
If the current trend continues, Messari predicts that Ethereum will become the first public block chain to process $1 trillion in remittances over a calendar year.
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Will Ethereum leave Bitcoin behind soon?
Ethereum’s strongest calendar year to date compared to Bitcoin was 2018, when half a billion dollars were processed, which represented 59% of the $849 million volume of Bitcoin this year.
Bitcoin is on track for its second strongest year after 2018, which is expected to process $800 million.
Bitcoin and Ethereum
However, this is not a direct comparison between the two block chains. Since the DeFi bubble is largely based on Ethereum-operated Smart Contracts, the Ethereum network now processes the volume of an entire sector, while Bitcoin largely represents BTC-based value transfers.
Messari’s Ryan Watkins attributes much of Ethereum’s volume growth to the increased ERC-20 volume of stablecoins, with the majority of tether transactions (USDT) now being processed through Ethereum. In addition, yield farming driven demand has increased supply for DAI by more than 600%.
Recommended Reading: Tether – Messiah or Charlatan: What is behind the rise of USDT in the billions?
Watkins also notes a booming on-chain liquidity of decentralized stock exchanges (DEXs), with uniswap and Curve together reaching more than $20 billion in September. DEXs now account for more than 13.6% of total volume on exchanges.
Ethereum competition never sleeps
However, Messari predicts that „the next twelve months may come to define the platform wars,“ and describes Ethereum’s persistently high fees as a problem that rival block chains will try to solve, along with „the rise of parallel defi ecosystems.
Keep an eye out for any would-be Ethereum killers who continue to empty their treasuries to build a parallel DeFi sector by late 2020 and beyond.
In August, Chris Burniske, a partner at PlaceHolder Capital, claimed that Ethereum and Bitcoin were competing for the first $1 trillion market capitalization in crypto. The question is: Who will win this race?