Etheruem, the largest smart contract platform, is in a good position to record $8 trillion in transactions by the end of 2021, according to a report from Messari, the leading provider of top research, news, metrics, and live data for cryptocurrency.
According to recent data for the second quarter of 2021 from Messari, Ethereum settled a record $2.5 trillion in transactions. Recall that the blockchain platform saw a 3x increase in transactions in the first quarter, settling $1.5 trillion in transactions, an increase from $570 billion recorded in the fourth quarter of 2020.
Going by the account of Ryan Watkin, the senior research analyst of Messari, Ethereum is poised to settle $8 trillion before the end of the year.
“In Q2 2021 Ethereum settled $2.5 trillion in transactions. This represents +65% QoQ and +1,490% YoY, and puts Ethereum on pace to settle $8 trillion in 2021.”
In Q2 2021 Ethereum settled $2.5 trillion in transactions.
This represents +65% QoQ and +1,490% YoY, and puts Ethereum on pace to settle $8 trillion in 2021. pic.twitter.com/w97YSdwIgo
— Ryan Watkins (@RyanWatkins_) July 14, 2021
The analyst is of the opinion that the notable increase can be simply attributed to the boom in the decentralized finance (DeFi) and stablecoins.
Ryan Watkins tweeted, “The largest driver of this growth continues to be DeFi and Stablecoin activity.”
According to Messari’s second-quarter DeFi Review shared on 14th July 2021, between April and June, decentralized exchange (DEX) volumes attained $404.9 billion, an increase of 11,751% year-over-year and an 83% increase from the numbers recorded in Q1 of this year. Messari also stated that outstanding loans in lending platforms also grew by 44% in the second quarter.
Ryan Watkins also pointed out that the rollout of layer-2 scaling solutions on Ethereum will significantly scale decentralized finance sectors.
“The most anticipated launches of these solutions are optimistic rollups which allow thousands of transactions to be bundled into a single rollup block.”