According to a quarterly report from Ryan Watkins, the Ethereum network successfully settled a gigantic sum of $1.5 trillion in transactions for the first quarter of 2021 which is a new milestone for the Ethereum network.
In previous years, Ethereum network equally settled huge volumes of transactions. However, the transaction volume in Q1 2021 has hit a new all-time high on the network.
In Q1 2020, the volume of transactions on the network equaled $116 billion. This was a massive increment when compared to the stat of the previous year. The 2019 data shows that just $31 billion worth of transactions were settled in the first quarter of the year.
The transaction volume of the Ethereum network has consistently grown over the years. The recent $1.5 trillion mark hit is the highest volume of transactions ever settled on the ETH network in a quarter and it surpasses the combined volume of the last seven quarters.
Possible Challenges to Growth of Ethereum
ETH blockchain is the first smart contract network and is arguable the best in the industry, however, in recent times more smart contracts enabled blockchains have sprung up.
Polkadot, Solana, Cardano currently operate a smart contract platform. These projects have proved to be solid enough to compete with the Ethereum smart contract.
Crypto users have frequently condemned the ETH network for its high gas fees. At the moment, the average gas fees per transaction on the ETH network is over $60, discouraging lot of users from transacting on the network.
In fact, this is one of the proposed reasons for the sudden rise of Binance Smart Chain (BSC) projects. More users have turned to BSC because of the low transaction fees the platform offers. This means that the ETH network may have less users transacting on its network than it should have had.
However, if the growth of the ETH network continues consistently, regardless of the high transaction fees, Ethereum may hit a record of $6 trillion settlements by the end of the year per the data from Watkins.