Ethereum is on a path that could make it the first public blockchain to be valued at over $ 1 trillion
About two months ago, Chris Burniske of PlaceHolder Capital declared that Ethereum and Bitcoin were competing in terms of the first platform to reach a market capitalization of $ 1 trillion in cryptocurrencies. Now it looks like Ethereum is going to cross the line first.
The Ethereum network is growing every day and, according to previous trends in recent months, it could reach $ 1 trillion this year. It will be the first blockchain to reach that milestone if it succeeds.
The DeFi frenzy in the third quarter was a major boost in this path, as it significantly contributed to the ETH network being able to settle more than twice the daily BTC transaction volumes. The cryptocurrency market data platform Messari, show that the 30-day continuous daily average for the volume of BTC transactions is less than $ 3 billion, while ETH is processing $ 7 billion.
The last time Ethereum had a strong year compared to Bitcoin was in 2018. That year, Ethereum settled $ 500 million in transaction volume, while Bitcoin processed $ 849 million in the same period.
Bitcoin is expected to settle $ 800 million this year. If it reaches that milestone, 2020 will be its second strongest year, after 2018.
The comparison between Ethereum and Bitcoin is, however, indirect. This is because of the underlying factor that influences the volume of ETH. Bitcoin mainly represents BTC-denominated value transactions. Ethereum, on the other hand, sets the volume for the DeFi sector, since a significant part of the DeFi activity takes place at the top of Ethereum-based smart contracts.
Messari also predicts that the next 12 months will play an important role in defining platform wars in the crypto space. This will likely be the case, as current Ethereum rates, being expensive, represent an obstacle that competing blockchain platforms will try to resolve. Messari also notes that the emergence of parallel DeFi ecosystems will be a crucial factor that will determine the outcome.