Ethereum (ETH) has seen a surge in activity, which has led to a spike in prices. The second largest cryptocurrency is up 16.31% in the past 24 hours to hit $ 3,379 during intraday trading CoinMarketCap.
While the head-to-head battle between Bitcoin and Ethereum continues, the latter has emerged as the winner in terms of usage. Damian Sowers, the founder of Level Frames, accepted:
“ETH usage is now 54X” BTC. Flippening is inevitable. “
The exploding usage can be explained by the fact that Ethereum has more use cases than Bitcoin. For example, ETH has emerged as the backbone of various sectors such as non-fungible tokens (NFT) and decentralized finance (DeFi), which have seen exponential growth in the crypto space.
For example, the DeFi industry is a billion dollar sector because it was recently valued at $ 81.85 billion.
Additionally, Ethereum has processed $ 6.2 trillion in transactions in the past 12 months. Ryan Watkins, a researcher at Messari Crypto, explained:
“In the past 12 months, Ethereum has processed $ 6.2 trillion in transactions. That number is up 369% from 2020 and was driven by a strong third quarter with Ethereum trading $ 1.5 trillion. “
ETH 2.0 deposit agreement is the largest Ethereum holder
To to the data analysis company IntoTheBlock:
“The Ethereum 2.0 staking contract has become the largest holder of ETH. There are now 7.84 million ETH, which means the contract has grown at a rate of 23,442 ethers per day, with a total of 51,200 unique addresses on file.
The total value locked in ETH 2.0 recently hit an all-time high (ATH) as more and more investments flow.
Ethereum 2.0 was introduced in December 2020 and is considered a stepping stone to a Proof-of-Stake (POS) consensus mechanism from the current Proof-of-Work (POW) Frame.
The POS algorithm allows for more energy efficient confirmation of blocks and requires the validators to use ethers instead of solving a cryptographic puzzle. Therefore, it is expected that sharding will improve scalability.
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