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Ethereum reaches 1 billion transactions on network

Photo of: Nathan VDH
by Nathan VDH

The Ethereum public blockchain remains young with a launch in 2015. But thanks to its prominent place in DeFi and Ether, it is a must. Thus, Ethereum totals 1 billion transactions.

Ether is not the only asset of the Ethereum project to break records. It is the public blockchain as a whole that shows impressive figures. Since its launch in 2015, Ethereum has completed more than 1 billion transactions.

And according to Etherscan, the pace of daily transactions has increased significantly over the period. As of May 2017, the blockchain was handling 100,000 transactions per day. The value of Ether is undeniably a growth driver.

Thus, in 2018, when ETH passed the $1,000 mark for the first time, Ethereum recorded one million transactions. This figure subsequently stabilized at between 500,000 and 1 million transactions per day.

But the blockchain now has other advantages. And the first of them is undoubtedly the DeFi. In June 2020, several popular protocols of decentralized finance recorded strong growth.

The effect was then immediate for Ethereum. Indeed, the threshold of one million daily transactions had been regularly crossed since then. According to DeFi Pulse, the value of the crypto’s involved in DeFi now exceeds 35 billion dollars.

This popularity, combined with the growing investor interest in Ether, is not without its drawbacks, however. Network congestion is a recurring phenomenon. And in the field of gas fees, Ethereum also breaks records.

In January, the Ether established a new ATH. For Ethereum miners, 40% of the $830 million in sales came from transaction fees. This month, the average price per transaction even climbed to $23.

In reaction, an exchange was limiting its operations on the ETH and some ERC-20 tokens. “Service will resume when gas charges return to normal levels. All other cryptocurrencies are operating normally,” Liquid said.

In addition to the Layer 2 solutions, the new Ethereum 2.0 network and its proof-of-stake consensus must provide a sustainable response to congestion. Developers and users expect above all a moderation of gas costs.

ETH 2.0 is all the more expected as Ethereum’s growth is expected to continue. At this rate, the blockchain should reach 2 billion transactions in just two years. Without the new network generation, cost inflation could therefore be even more detrimental.