Transactions on the Ethereum network continue to outpace Bitcoin’s as momentum for decentralised finance protocols snowballs. ETH is testing all-time highs, but has yet to double in price from its record, like BTC did.
Highest Since 2017
Ethereum transactions are soaring near the high reached at the top of the 2017/2018 crypto rally, at around 8.2M weekly transactions, up from 3.5M a year ago, while Bitcoin transactions have been hovering around 2M weekly transactions since 2017.
For several months since the initial boom of the decentralised financial ecosystem last year, the Ethereum network has gained ground in bitcoin terms, in large part due to the thousands of applications making use of the Ethereum blockchain.
Data from Glassnode media describes this shift in momentum, which is explainable by the different fundamentals between the two largest cryptocurrencies by market cap.
As a store of value, transactions on the bitcoin network are more linear, whereas a platform that hosts dApps, protocols and various other projects would naturally have more activity.
Currently, assets locked in DeFi reached a whopping $26 billion, according to data from DeFi Pulse. Back in February last year, that figure stood at just over $1 billion, and has steadily increased in tandem with network activity on the blockchain, per the above chart.
Meanwhile, Ether trades below $1,300, having once again tested the upper price limit at $1,480 on Monday.
For the better part of a month, Ether traded within a range, forming an ascending channel not dissimilar to what happened in the month of December.
If history is a guide, then a breakout could occur in the beginning of February, just in time for the Chicago Mercantile Exchange Ethereum Futures launch on the 8th.
Having already tapped all time highs, is it only a matter of time before ETH follows bitcoin’s lead and doubles in price?
Time will tell.