Ethereum transactions surpass the $6.2 trillion mark in 2021, a 369% increase since 2020

Ethereum transactions
Ethereum transactions

TL;DR Breakdown

  • In the previous 12 months, Ethereum transactions have surpassed the $6 trillion mark
  • It processed $1.5 trillion in transactions during the third quarter of 2021
  • The majority of the transactions were made using stablecoins rather than Ether.

According to recent data from Messari, a cryptocurrency analytics platform, Ethereum handled more value transactions in the previous year than it will in 2020.

Ethereum Transactions Data: ETH settles $6T transactions

The total value of all transactions on the blockchain since October 2018 has been about $6.2 trillion, and $1.5 trillion was settled in just quarter three alone – i.e., from July to September 2021. For the previous 12 months, the entire record represents a 369 percent increase over the number of transactions settled on the network in the year preceding it, stated the report.

About 80 percent of all transactions were conducted on stablecoins, according to data from Coinmetrics cited by Messari. While the number of transactions within Ethereum-based protocols has increased over time, monthly active users have plateaued.

According to Messari, data showed that the number of active users of Ethereum-based protocols had not increased over time.

Ethereum is also processing significantly less value than Tether (USDT) or even Bitcoin Cash (BCH), said the article.

According to the data, Ethereum-based stablecoins account for roughly $3.39 trillion of all transactions settled on the network this year, with Ether (ETH) representing just $2.78 trillion. Overall, the rise in network activity demonstrates the increasing interest in Ethereum-based non-fungible tokens (NFTs) and decentralized finance

Ethereum is the underlying blockchain for most DeFi and NFT applications. As a result, network transaction counts are only expected to rise as both markets continue to grow in popularity. This is unlike the Bitcoin blockchain, which is used primarily for money transfers.

Monthly transaction

In the last 12 months, Ethereum’s monthly transaction volume has risen by over 6%. On October 4th, about 35.6 million transactions were recorded on the blockchain, and 1.14 million on July 5 – daily 7D moving average.

Bitcoin mining difficulty

Bitcoin’s on-chain data also indicates the network’s active addresses have been on a downward trend. Active users on the network have decreased by 36% to 465.5k since May when it hit 734.5k. This may be attributed to more HODLers or people leaving the blockchain due to sluggish and expensive transaction fees.

Mining difficulty has nearly returned to its pre-China exodus levels. With an additional upward adjustment expected this week, having increased 39% since late July. The difficulty ribbon also posted the strongest reversal in more than two months, according to Glassnode.

On October 5, the bitcoin network’s difficulty increased by four percent, according to Chinese media company Wu Blockchain. The sixth increase since July 31 was observed on block height 703,584 on October 5.

After the May 2020 halving event, block rewards were cut by half from 12.5 BTC to 6.25 BTC, yet mining profitability has improved significantly.

The profitability of mining Bitcoin using a CPU/GPU miner on the B1 and G2 graphics cards has increased by 275% since before the Bitcoin split, and it has increased by roughly 630 percent when compared to June 2020’s lows of around $6 million to $8 million.