Is DeFi Part of the Reason?
Earlier this week Ethereum's daily transactions have exploded and have reached levels not seen since 2018. On June the 22nd, there were 1,092,083 recorded. While this has dipped slightly and has 1,070,862 transactions recorded for the 24th, this is still a massive amount of transactions in comparison to previous months.
This seems to echo the heights of 2018, when Ethereum had a record amount of 1,349,890 transactions in January.
While back in 2017 - 2018, ICOs or Initial Coin Offerings might have driven the price of Ethereum and the number of transactions up, 2020 is different. The ICO landscape has mostly dried up with a handful of offerings now offered as token launches on some exchanges.
Ethereum and DeFi
It seems that that the DeFi is now what might be behind the demand for Ethereum and its transactions. Recently a few new DeFi protocols were released that quickly gained in popularity and market cap. This includes Compound (COMP) which was recently listed by Binance and Balancer (BAL). Both offer high yields on cryptocurrency. Additionally, the DeFi liquidity pool, Bancor are gearing up for the release of Bancor V2.
With DeFi protocols gaining in popularity and the anticipated release of Ethereum 2.0 around the corner, good things are seemingly awaiting Ethereum. If Bitcoin's price manages to grow, Ethereum could potentially outpace its growth in the future. Perhaps it might retrace 2018's all time high.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado