A significant change in the Ethereum ecosystem is the rise of the DeFi sector, thereby promoting a considerable number of users to join the platform. Specifically, the number of daily transactions of Ethereum has surpassed 1 million for the first time since January 2018.
Ethereum fundamental strength has grown immensely throughout 2020
However, these records are completely different from previous times. Take, for example, the ICO growth in 2017 – very explosive but not sustainable and quickly fading. Meanwhile, compared to this year, the new growth is much more realistic due to the utilities that many DeFi initiatives bring.
Since January 2018, this is the first time since then, and ETH has once again witnessed more than 1 million daily transactions. Moreover, the current network usage stems from DeFi-based smart contracts being deployed on the network.
Even so, even Ethereum co-founder Vitalik Buterin is skeptical about the DeFi trend. In a recent tweet, Buterin emphasized that the attractiveness of high profits from DeFi initiatives is likely to be the opportunity to sell temporary price spreads or other risks.
Honestly, I think we emphasize flashy things that give you fancy high-interest rates too much. Interest rates that are significantly higher than what you can get in traditional finance are inherently temporary price spread opportunities or risks that are not included.
Therefore, we can only wait and see how the DeFi ecosystem develops in the coming months. At that time, we have a short-term trend or whether it is here or not. Even so, the price of ETH has not improved. By the last time, Ethereum’s daily transaction surpassed one million, ETH’s price was at $ 1,033, over four times the current value.