In addition, Ethereum is now settling more transaction volumes than Bitcoin as the chart below shows:
Both of the cryptocurrencies have continued to exhibit strong fundamentals amidst the price volatility. Bitcoin and Ethereum hash rates are both at all-time highs which signals strong network and miner support.
Following the launch of the Ethereum 2.0 PoS consensus algorithm, proponents of the cryptocurrency are optimistic that Ethereum’s value proposition is strong.
The DeFi use case for Ether is proving to be particularly difficult to ignore. The amount of ETH transferred by smart contracts has spiked in early 2021 and is approaching all-time highs set in mid-September 2020 – the height of summer DeFi mania.
This is more evidence that DeFi and other decentralized applications built on top of Ethereum are gaining momentum.
The rise in DeFi, where 95% of the action takes place on the Ethereum blockchain, offers high hopes and promise of the ecosystem, and provides a solid use case which has so far surpassed $24 billion in locked assets.