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 stated that Ethereum and Bitcoin were competing in terms of the first platform to achieve a $1 trillion market capitalisation in cryptomorphs. Now it looks like Ethereum will cross the line first.
The Ethereum network is growing every day and, in Bitcoin Loophole line with previous trends in recent months, could reach $1 trillion this year. It will be the first blockchain to reach this milestone if it is successful.
The DeFi frenzy in the third quarter was a major boost on this path, as it contributed significantly to the ETH network’s ability to liquidate more than double BTC’s daily transaction volumes. The Messari crypto market data platform shows that the continuous 30-day daily average for BTC transactions is less than $3 billion, while the ETH is processing $7 billion.
The last time Ethereum had a strong year compared to Bitcoin was in 2018. That year, the Ethereum settled $500 million in transaction volume, while the Bitcoin processed $849 million in the same period.
It is estimated that Bitcoin will settle $800 million this year. If it reaches this 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 represents mainly BTC denominated value transactions. Ethereum, on the other hand, sets the volume of the DeFi sector, as a significant portion of DeFi activity occurs at the top of intelligent Ethereum-based contracts.
Messari also predicts that the next 12 months will play an important role in defining the platform wars in the crypto space. This is likely to be the case, as the current Ethereum rates, being expensive, represent an obstacle that competing blockchain platforms will try to solve. Messari also notes that the emergence of parallel DeFi ecosystems will be a crucial factor determining the outcome.