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The ETH network will settle $ 8 trillion at this rate in 2021

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Ethereum (ETH) prices may continue to fall, but its characteristics as a layer of financial settlement have never been stronger. According to Messari’s analysis, ETH settled $ 2.5 trillion between April and June this year in the second quarter.

Added that this represents a quarter-on-quarter increase of more than 65% and almost 1,500% year-on-year. If the current pace continues, ETH could settle $ 8 trillion by the end of this year, the analyst said.

 

The ETH network could settle $ 8 trillion by the end of the year

Researcher Ryan Watkins said DeFi and stablecoin activity continued to be the biggest drivers of this growth.

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In the same quarter in 2020, when the DeFi sector was just beginning to develop, $ 159 billion was settled on Ethereum. A year back to 2019, when markets were still largely bearish, only $ 73 billion was settled on the network.

ETH whales have also increased their stakes and the ten largest wallets now control more than 20% of the entire offer.

Stablecoin activity

Stablecoins still accounted for about half of the total settlement for the quarter, despite the decline in Ethereum-based ERC-20 coins.

Messari noted that in the second quarter of 2021, the stablecoin capitalization reached over $ 107 billion, an increase of 70% since the first quarter and more than 800% year-on-year. In three months, the volume of transactions with stablecoins was $ 1.7 trillion, a year-on-year increase of 1,090% and 59% since the first quarter.

The highest-growing stablecoins in the second quarter were USDC, BUSD and DAI, which increased their market share to 23%, 9% and 5%. USDT is still the market leader, but its dominance is gradually weakening.

According to Tether’s Transparency Report, its total offer is currently 62.4 billion, an increase of 197% since the beginning of the year. Of this, less than half, USD 30.9 billion, is on the ERC-20 token standard. There’s a little more Tron in the $ 32 billion network.

The USD Coin significantly outperformed Tether this year in terms of growth, with supply up 577% from the beginning of the year to a record $ 26.4 billion in circulation today.

The price of Ethereum is weakening

Despite rising transaction numbers, ETH continues to weaken. ETH prices are still below the psychological level of $ 2,000. But Goldman Sachs, for example, still sees ETH as a bullish due to its use cases and smart contracts.

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