Ethereum usage is skyrocketing this year. The value of transactions processed on the network has jumped in 2021.
According to a study by Messari, Ethereum has processed $926 trillion worth of transactions so far this quarter – 700% more than in the first quarter of 2020.
The network is currently on track to process $1.6 trillion worth of transactions in the first quarter of this year. In the last 12 months, Ethereum has already processed $2.1 trillion in transactions.
If Messari’s forecast of $1.6 trillion is accurate, Ethereum’s quarterly settlement value will have increased by 1,280% compared to Q1 2020 and by more than 5,000% compared to Q1 2019.
Messari researcher Ryan Watkins noted that the data contradicts the prevailing narrative that Ethereum is experiencing an exodus of users due to its high fees, exclaiming:
“Incredible scaling for a technology that critics claimed couldn’t scale.”
The recent surge in Ethereum’s settlement value is due to explosive growth in the DeFi and non-fungible token space, most of which are based on Ethereum.
Massive demand on the network has pushed prices to all-time highs. With many retail traders increasingly pricing out the use of the Ethereum mainnet for smaller transactions.
Average Ethereum transaction fees rose to a record high of $40 on Feb. 23, with Ethereum generating $50 million worth of transaction fees in a single day.
Cryptofees.info currently reports an average daily fee generation of $32 million for ETH over the past seven days. By comparison, Bitcoin has generated an average of only $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’s fees have retreated to $21 on average.
On Feb. 24, Cointelegraph reported that a fat-fingered DeFi user accidentally paid more than 25 Ether worth $36,000 for a transaction that week.
Amid the high fees, crypto influencers are pushing for an accelerated adoption of ETH 2.0 to ease pressure on the overburdened proof-of-work blockchain.