Research carried out by Messari shows that Ethereum might reach a settlement value of $1.6 billion, with the way the coin is going. If ETH eventually reaches the mark, it could represent a huge increase compared to last year. Ethereum quarterly settlement value would have increased more than 12 times compared to the first quarter of 2020.
Messari could be right after all. The research company reveals $926 billion has already been settled by ETH between January 1st and now. This is already 7 times more than the value of transactions it settled in 2020’s Q1. Ethereum quarterly settlement value as projected by Mesarri could also hit another milestone. The value would be 50 times more compared to Q1 2019.
Interestingly, the blockchain settled about $2.1 billion in transactions in 2020. With the same amount projected in Q1 2021 alone, it shows that ETH is being used massively. Some analysts think that the high gas fees of Ethereum would discourage its use. However, that does not seem to be the case as Ethereum’s quarterly settlement value is breaking records.
Why is Ethereum Settlement Value on the Rise?
The settlement value is an indication of how much a network is being used. For ETH, the rise of decentralized finance, also known as DeFi, could be one of the reasons the value is going higher. DeFi platforms, which run on the ETH network, are becoming very popular with users these days.
Non-fungible tokens (NFTs) are also another aspect that could cause a settlement value increase. NFTs are rare collectible items. This, coupled with the demand of ETH by crypto users, could be why ETH’s quarterly settlement value might even surpass Messari’s deduction.