Ethereum’s network paces on to settle $8 trillion in 2021 despite the prices dropping. However, the properties as a financial settlement layer have never been stronger as we can see more in today’s Ethereum news.
According to Messari’s second-quarter Defi review, Ethereum’s network paces on to settle $8 trillion in 2021. it added that this shows a gain of more than 65% quarter on quarter and about 1500% year on the year. If the pace continues, the Ethereum network could settle $8 trillion by the end of the year as Messari noted. Ryan Watkins stated that the biggest driver of the growth continues o be DeFi as well as the stablecoin activity. For the same quarter in 2020, the Defi sector was starting to increase as $159 billion was settled on Ethereum. Looking back to 2019 when the markets were largely bearish just $73 billion was settled on the network.
Ethereum transaction volume – Messari.io
Ethereum whales have also been increasing their holdings with the top ten ETH wallets now controlling more than 20% of the supply. Stablecoin is made up of about half of the total settlements for the quarter despite the drop in the ERC-20 based ones on Etheruem. Messari noted that in the first quarter of 2021, the stablecoin monetary base hit $107 billion marking a 70% increase since Q1 and more than 800% year-over-year. The three-month period facilitated $1.7 trillion in transaction volume for stablecoins with a 1,090% year over year and 59% since Q1 as the report added.
The biggest growing stablecoin in Q2 were BUSD, USDC, and DAI which grew their market share to 9%, 23%, and 5% respectively. USDT is the market leader but its dominance is gradually fading away as the rivals eat out of its share. According to the Tether transparency report, its total supply is standing at 62.5 billion which is an increase of 197% since the start of the year. Of the total, less than half of 30.9 billion USDT is on the ERC20 token standard which is more are on the Tron network. USDC outperformed Tether this year in terms of growth with a supply surge of 577% since the start of the year to record 26.4 billion USDC circulating today.
Despite the ETH bullish transaction figures, the underlying asset continues to weaken but the prices are still below the psychological level of $2K. As per CoinGecko, Ethereum took a 15% hit over the past week and is now down 54.7% from its ATH.