ETH usage is skyrocketing this year, with the value of paid transactions on the network skyrocketing in 2021.
According to research from Messari, Ethereum has so far settled $ 926 trillion worth of transactions this quarter, 700% more than it was processing in Q1 2020.
The Ethereum network is currently on track to process $ 1.6 trillion in transactions for the first quarter of this year. Over the past 12 months, Ethereum has processed $ 2.1 trillion in transactions.
If Messari’s $ 1.6 trillion forecast is correct, Ethereum’s quarterly settlement value will increase by 1,280% from Q1 2020 and more than 5,000% from Q1 2019.
Messari researcher Ryan Watkins noted that the data reflects the popular story that Ethereum is witnessing a migration of users amid high gas fees, adding:
“The staggering scale for a technology that critics say cannot scale.”
Ethereum’s recent increase in settlement value could be attributed to the explosive development in the DeFi sector and non-fungible tokens (NFT), most of which are based on Ethereum.
Huge demand online has caused gas prices to rise to all-time highs. With many retail traders increasingly losing their money using the Ethereum network for smaller transactions.
Average Ethereum transaction fees soared to a record high of $ 40 on Feb. 23, with Ethereum generating $ 50 million worth of transaction fees in just one day.
Cryptofees.info is currently reporting an average daily fee of $ 32 million for ETH over the past seven days. In comparison, Bitcoin only generated an average of $ 8 million per day over the past week.
According to Bitinfocharts.com, average transaction fees rose to a record high of nearly $ 40 on Feb. 23. At the time of writing, Ethereum fees have dropped to an average of $ 21.
Amid high fees, many crypto KOLs are urging the rapid launch of ETH 2.0 to ease the pressure on the congested PoW network.
After all, the most profitable people are still the miners.