Forex and Crypto News

Ethereum set a record for transaction volume

15:41 22 January /2019

In December 2018, the Ethereum network showed a record for transaction volume in its history. With a successful Constantinople update, this figure may grow even more due to the reduction of gas costs in ETH blockchain.

In ETH network transaction volumes are growing

Diar, which is engaged in the research of the cryptocurrency market, found that in December 2018, in Ethereum network the volume of transactions reached a record of 115 million ETH. But these data can be true only if you don’t take into account the hacking period of the DAO project in 2016 and its hard fork, which resulted in Ethereum Classic (ETC). In that short period, the volume of transactions showed an abnormally high value.

The number of transactions decreases, the researchers from Diar wrote about this:

In terms of the number of transactions, there are no records. The index was falling during the last year, having stabilized only in October at the level of 16-17 million operations. In January 2019 this amount will be 15 million, according to Diar.

During this time the negative dynamics was also shown by the trading volume if we consider it in US dollars, not in ETH. In 2017, transactions totaled $1.1 billion, and in 2018, the figure was $815 million. The reason was in a strong decline in the price of Ethereum, which fell by 80% over the year.

tx-chart.jpg

                                                        Ethereum transaction chart

Recently, Ethereum quotes are moving along with the market: in the last 24 hours, the cryptocurrency showed a growth of 1.1%.

Risks for Ethereum Investors

In addition to the lack of incentives for the growth, the high competition is a negative factor for Ethereum because many projects work in the area of decentralized applications.

In addition to the well-known TRON (TRX) and EOS (EOS), the project can get competitors in the form of small startups like Dfinity and Cosmos. They haven’t begun active work, but, according to some analysts, after a full release, they will pose a greater threat.

The founder of Multicoin Capital, Kyle Samani, said in an interview:

In 2019, Ethereum can still remain the de facto benchmark of the smart contract industry, but by 2020 much more sophisticated networks will emerge. They will be interesting for developers of decentralized applications and qualified programmers from the cryptocurrency teams.

TRON delivers a lot of trouble to the project, which after the launch of a virtual machine has become an attractive network for decentralized applications: their number is equal to 142.

The Ethereum community doesn’t see a positive signal in the record of transaction volumes, users are confident that this cryptocurrency price will continue to decline:

@nextGCoin:

… At ETH, many believed, but even they should admit that it is no longer the best network among all the competitors of decentralized applications.

@ Wallet_Maker55:

I don’t think that some small projects will make a strong competition, but TRON and EOS may become the leaders.

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