Ethereum network registered record transactions volume in ETH despite price collapse
|- The number of ETH transactions have been growing recently.
- The price momentum is still unclear after Tuesday’s brief sell-off.
Ethereum on-chain transaction volume peaked at $11B in 2017 and dropped by 97% towards the end of 2018, mostly due to Ethereum price collapse. The number of transactions on the Ethereum network plummeted 50% by the end of the year from the peak at the beginning of 2018, according to the Diar research.
However, ETH value of in-chain transactions reveals a different picture. In December the transactions volume spiked to 115M ETH, which is the highest amount ever (except for DAO hack period in 2016).
The Diar researchers found out that the volume has started growing in November and peached in December. They also noted that Ethereal network demonstrated stability since October 2018 with an average monthly on-chain transaction count around 16-17M.
The experts believe that in 2019 the figure will settle around 15 million transactions per month. Meanwhile, transaction fees are regarded as an unlikely factor that might have capped the growth.
"Fees are unlikely to be the hindrance of growth for Ethereum already having some of the lowest fees for transacting on-chain.
But developers are looking long-term and the Constantinople upgrade, now pushed back, will bring down fees a great deal further for certain types of transactions that would allow for better storage use.
In terms of price momentum, ETH has lost nearly 90% of its US dollar value since January 2018 amid severe bearish market. On Tuesday, the coin plummeted as low as $111.70, but the sell-off proved to be short-lived. The coin has recovered towards $120.00 by press time. DMA50 still caps the upside at $120.50.
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