Activity on the second-largest network is thriving.
Since early this year, daily transactions on Ethereum have been growing, hitting an all-time high last month. Although it has come down some as DeFi mania cooled down, daily transactions are keeping to July-August level.
Ethereum fees have also gone back to normal levels as the DeFi rush came to an end, which in August sent average fees to $10 for the first time, bringing Ethereum’s scaling issues into glaring light.
With the upgrade coming up to keep the fees down for another potential growth spurt, it “would mean less demand for the token because people would need to buy fewer coins to do the same operations. From developers to end-users, it will largely reduce the buying pressure,” wrote analyst Mati Greenspan.
Moreover, as per Glassnode, the popular stablecoin Tether transaction volume on Ethereum also saw a 20% spike over the past 30 days. It reached a new milestone of $600 billion.
“Tether’s important role in the digital asset ecosystem… If you were to add tether’s usage on other chains such as Tron, Omni, and Algorand, the headline figure would be higher still,” said Paolo Ardoino, CTO at Tether and its sister company crypto exchange Bitfinex.
Out of the total supply of $16 billion, USDT’s supply on Ethereum has also exceeded $10 billion, representing nearly 65% of the Tether token supply on a blockchain.
7.6% of ETH’s Total Supply Out of the Market
Amidst this growing activity, Ether’s amount on exchange wallets has been declining ever since May, as per Crypto Quant. Ethereum exchange reserves have fallen to 11.8 million ETH from the mid-May high of 14.14 million ETH.
This trend coincides with the ETH that hasn’t been moved in over a year, which has reached 60%.
Additionally, 8.7 million of ETH are currently locked in the decentralized finance (DeFi) sector, as per DeFi Pulse.
“7.6% of ETH’s total supply is currently locked in the DeFi ecosystem. The amount of ETH locked in DeFi increased by a record high of 3.3M in September and has grown by 5.6M in 2020. That’s 2M more than the total supply of ETH has increased this year,” as per The TIE.
The only factor lagging is Ether’s price, which is currently trading around $380, up only 188% YTD and still down 75.76% from its ATH.