Ethereum transactions have surged by around 50% this month alone as the network now settles more than Bitcoin. ETH prices are having a moon shot of their own as the asset closes in on a new all-time high.
According to the latest data from Messari, Ethereum transactions have spiked in January to a record $12 billion. This figure is a rolling 30-day average which lifted off around New Year’s Day.
Researcher Ryan Watkins described the trend as ‘going parabolic’ adding that Ethereum now settles $3 billion more than Bitcoin per day.
The big move has been attributed to stablecoin transactions, the majority of which are based on the Ethereum network. The ‘flipping,’ according to the Messari chart, occurred in July 2020, just before the DeFi boom which helped to boost transactions on Ethereum.
More Reasons to be Bullish on Ethereum
The sheer volume of financial transactions on Ethereum is just one reason to be bullish. Confidence and investments in ETH 2.0 are increasing daily. There are now 2.59 million ETH staked in the Beacon Chain deposit contract according to the ETH 2.0 Launchpad.
At current prices, this is worth roughly $3.4 billion and equates to approximately 2.26% of the total supply. The Launchpad estimates an annual percentage yield of 9.7% for stakers but this figure will likely decline over time as the amount staked increases.
ETH 2.0 already has more validators than its ‘ETH killer’ rivals making the network the most fundamentally secure, and it isn’t even fully operational yet.
The number of recent Layer-2 launches and platforms is also a reason to be bullish on Ethereum. The average transaction price is currently $6.70 according to BitInfoCharts, so faster and cheaper solutions are in high demand.
Price Approaches New Highs
Ethereum prices have been on a tear over the past 24 hours, adding 7.5% since the same time yesterday. According to TradingView, ETH was changing hands for $1,338 at the time of writing, just 8% or so away from its all-time high.
The charts also show that ETH prices spiked to $1,400 on Jan. 10, but failed to sustain above this level.
General Partner Social Leverage, Howard Lindzon, called it an all-time high but prices were marginally higher in January 2018 depending on the exchange: