Ethereum flips bitcoin for the average weekly remittance value

This year was certainly a test for the Ethereum network that pushed it to its limits under unprecedented loads. Users were upset about the sky-high gas charges, but other metrics in the chain have been good for the entire Ethereum ecosystem.

Economic activities increase

A recent report by analyst CoinMetrics found that Ethereum flipped Bitcoin in terms of an average weekly transfer of seven days, which has now hit $ 3.08 billion versus $ 3.01 for BTC.

The ETH’s average adjusted 7-day transfer value turned the BTC around.

On September 5, the average adjusted 7-day transfer value for ETH reached $ 3.08 billion, compared to $ 3.01 billion for BTC.

Read more in this week’s SOTN: https: //t.co/6JXE5YEN8p pic.twitter.com/N3wcNUeunH

– CoinMetrics.io (@coinmetrics) September 9, 2020

It added that this is the first time since early 2018 that the average adjusted transfer value of Ethereum has surpassed that of Bitcoin for seven days. Back then, economic activity was driven by the ICO market and a multitude of new blockchain projects and tokens that were launched almost daily. Since Bitcoin was comparatively slow and expensive (at the time), projects used Ethereum as a means of raising funds.

Two and a half years fast forward, and the dynamic for today’s Ethereum economy is DeFi. A surge in income farming and protocol clones has resulted in much more financial value being transferred to the Ethereum network, which is the foundation of all DeFi things.

Up to 7 million ETH were tied to DeFi Smart contracts last week, the highest level ever, according to DeFi Pulse. As the markets cooled, collateral was withdrawn, and that number has fallen to around 5 million ETH today. Compared to this time last year, this means an increase of 138%.

Token swapping and liquidity mining have driven much of this activity, and products like YETH vaults from Yearn Finance have also attracted a lot of ETH’s liquidity. At the time of writing, according to Yearn statistics, there was $ 81.5 million in liquidity in the YETH vault.

Price rallies in Ethereum

As DeFi markets bounce back from their decline earlier this week, Ethereum prices follow suit. ETH has left its four-day trading range and hit a five-day high of just over $ 365.

ETH / USD. Source: TradingView

The move has pulled it back above the 50 day moving average, with the next level of resistance at $ 385. The crypto markets are back in the green today and Ethereum is currently leading them with an increase of eight percent on that day.

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