On its way to an all time high, Ethereum hit another milestone.
According to data from blockchain explorer Etherscan, the Ethereum network reached 1 billion transactions today.
The Ethereum blockchain was launched in 2015. In May 2017, it broke 100,000 daily transactions for the first time — then 1 million in January 2018 as prices rose to record highs above $1,000.
After a bull market gave way to a bearish one, daily deals cooled, averaging between 500,000 and 1 million per day. But since June 2022, transactions have consistently peaked above the 1 million per day mark, driven by the use of decentralized finance applications built on the ethereum blockchain.
DeFi apps like Aave and Uniswap allow traders to earn interest on their holdings and trade assets without going through a bank or exchange.
Instead, they rely on the Ethereum infrastructure. And there are a lot of transactions going on through such a protocol. There is now more than $35 billion worth locked in the DeFi protocol tracked by DeFi Pulse.
The increasing use of blockchain is burdening the network; it drives the cost of gas on blockchain which is getting more congested and expensive. The Ethereum 2.0 proof-of-stake network, which launched last year but is not yet fully functional, is designed to process larger amounts of transactions — and quickly.
If the daily transaction value remains stable, the Ethereum blockchain will reach 2 billion transactions within two years. Users expect Eth2 to be ready to launch before ETH reaches that milestone.