Ethereum Transaction Volume Rivals Visa As Blockchain Transactions Rise
Ethereum may be far younger than the traditional payment giants, such as e.g Visabut it has shown (yet again) that in a single decade blockchain has evolved into a force to be reckoned with.
As a payment technology, blockchain has grown as much as competing with established players. Recently data from Coingraph has shown that Ethereum, for example, processed $3.01 trillion in transactions, as opposed to Visa, which processed $3.08 trillion.
It’s a testament to the growth in mainstream adoption of the nascent technology, which is often perceived – sometimes almost exclusively – as a vessel for fraudsters, drug dealers and cybercriminals.
Ethereum is the second largest network: its current market value, according to CoinGecko, is $227.8 billion, compared to the first placed Bitcoins 538.96 billion dollars and 3rd place Tethers 82.8 billion dollars.
In particular, as the world’s second largest blockchain, Ethereum powers a number of financial technology solutions that seek to disrupt the global traditional financial market. These solutions include decentralized finance (DeFI), staking, lending and flash loans, among many others.
It has grown to become a rich and versatile environment, with plenty of room for further development – which is another advantage it has over traditional economic layers.
Last year it was reported that Ethereum processed 4.5 times more transactions than Visa in 2021.
Also, a report of Ethereum FoundationJosh Stark claimed that Ethereum surpassed Visa in trading volume in 2021. “Ethereum moved about 11.6 trillion USD. That’s more than Visa [$10.4 trillion]and more than double Bitcoin,” the report said.
Looking at the latest Ethereum daily transactions, etherscan shows 968,996 on May 28, with the highest record of 1,932,711 transactions on December 9, 2022.
Ethereum 1 Year Daily Transaction Chart:
Ethereum has already entered TradFi
The popular blockchain is already the preferred network for many established players who want to use the new technology – and among them Visa.
Besides just writing about Ethereum’s finances, as reported in mid-May, Visa used Ethereum’s Goerli testnet to try out transactionless payments using account abstraction.
It used a smart contract called Paymaster, allowing the company to take advantage of account abstraction to perform complex tasks on behalf of accounts and manage transaction costs.
“Excited to see Visa deploy our first paymaster smart contract on the testnet as we continue to research and experiment with account abstraction and ERC-4337,” Cuy Sheffield, head of Crypto at Visa, said at the time.
ERC-4337 is an Ethereum standard that achieves account abstraction without consensus layer change, allowing users to aggregate and automate transactions on the network.
“ERC-4337 sets up interesting future opportunities to improve the on-chain user payments experience through a self-storage smart contract wallet, which in turn could transform the way users engage with digital currencies and digital assets,” Visa said.
Visa first released a proposal that would allow Ethereum users to make automated programmable payments without the involvement of any third party last December.
The company also reiterated its commitment to crypto in March of this year, refuting reports that it planned to pause crypto push due to uncertain market conditions.
“We continue to work with crypto companies to improve fiat on and off ramps, as well as advance our product roadmap to build new products that can facilitate stablecoin payments in a secure, compliant and convenient way,” Sheffield said.
He added that the previous crypto meltdown did not change their views on digital assets and that “1685362627 It’s time to build!”
At the time of writing (Monday noon UTC), ETH was trading at $1,898, up 3% in a day and 4.5% in a week.
ETH 7-Day Price Chart:
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