Ethereum shows its power as a world-leading altcoin by surpassing Visa in terms of transactions volume.
Since surpassing Bitcoin in mid-2020, Ethereum continues to be the blockchain that settles the greatest flow of assets worldwide. This year Ethereum moved approximately $11.6 trillion. That is more than Visa and more than double Bitcoin.
A detailed analysis of Ethereum in 2021 by Josh Stark points out that the second-largest cryptocurrency in the world has overtaken Visa in terms of transaction volume. In total, an equivalent of 11.6 trillion dollars was transacted on the Ethereum network last year alone.
As shared by Josh Stark of the Ethereum Foundation, Visa transacted a total of 10.4 trillion dollars in 2021, Bitcoin moved $4.6 trillion, surpassing PayPal, while Ethereum managed to transact transactions double the volume of BTC also exceeded Visa after closing the year with a volume of transactions equivalent to 11.6 trillion dollars.
Given the values above, Joey Krug, CIO of Pantera Capital, is correct. During an interview with Bloomberg, he stated that Ethereum could dominate the global financial system. He said that over the next 10-20 years, he expects 50% of the world’s financial transactions to be linked to Ethereum.
While the leading innovative contract platform has serious competitors in the crypto ecosystem, he believes ETH blockchain will remain number one.
Joey Krug noted:
“If you roll the clock forward 10 to 20 years, a very sizable percent, maybe even north of 50%, of the world’s financial transactions in some way, shape or form will touch Ethereum.”
As most blockchains function as an auction system, where transactions with higher fees are accepted first, it is no surprise that when networks are overloaded, the transactions fees rise.
With the explosion of DeFi, NFT, play-to-earn gaming sectors, scalability has been Ethereum’s weak point ever since. In other words, the worldwide transactions volume could be a lot bigger if ETH fees were cheaper.