Ethereum Transaction Count on the march to All-Time-High

Ethereum total transaction count touched 1.24M on August 10 with ETH at $395. Before that, it was 1.22M on July 27

By · Aug 17, 2020 . 6min read

Ethereum Transaction ATH
Source: Pexels

While the likes of Brendan Blumer of Block.one is openly wooing DeFi protocol developers to migrate to EOS, primarily due to crippling gas costs, the latter and their community are making a louder statement with their actions. Ethereum transaction count is well on the march to touch and maybe surpass its previous all-time high – ATH.

Ethereum network set a record transaction count last on January 4th 2018. Total transaction counts on the network at that date was 1.34M with ETH at $1,042. Moreover, this was during the mad days of the ICO where anyone with just a poorly written whitepaper and some WordPress website could raise millions from several others seeking to take part in the birth of some unicorns or whatnot.

Data from Glassnode Studios, a blockchain data analytic firm shows Ethereum transaction counts is building up. Ethereum total transaction count touched 1.24M on August 10 with ETH at $395. Before that, it was 1.22M on July 27.

Ethereum transaction count
Souce: Glassnode studio

The interesting part is that ETH price is only a fraction of what it was during the transaction count ATH. Surely DeFi has been one of the sole drivers of this boom which has also spread to other altcoins.

Obviously, users who need to create a collateralized debt position – CDP will need to interact with a smart contract to open and lock tokens in a vault secured with immutable smart contract. This is the whole essence of DeFi. Now, no need for any middleman or opaque management of their funds as obtainable in legacy banking.

Ethereum, which is clearly the platform of choice for DeFi users, continues to see a boom in activities. From devs developing and deploying smart contracts to power DeFi protocols to users interacting with the latter.

Rising Ethereum transaction count clogs up network thereby shooting up transaction fees.

This boom has caused a spike in gas costs leading to shooting up in network transaction fees to surpass block reward for the first time ever. Average network fees have grown monstrously to around $7 per transaction.

Ethereum fees and transaction counts
Source: Coinmetrics

While miners are smiling to the bank, average network users who may not be able to afford this scary transaction fees might be looking for alternatives. Therefore, this is why Justin Sun of TRON, Brendan Blumer of EOS are wooing users to switch. But some ETH maximalist like Ryan Adams think otherwise;

Will Ryan’s confidence be deflated with mass migration or be bolstered with a higher DeFi TVL? Let’s wait.

Follow Cryptodose for more updates.

Share
       
         All News