Ethereum, which recorded a 3x increase in Bitcoin transaction volume, why?

Coinbase, the largest cryptocurrency exchange in the United States, has released a report on crypto assets for the first half of 2021. According to this report, the transaction volume of Ethereum, a crypto asset, in the first half of 2021 has increased by 1,461% from the first half of 2020 to reach $1.4 trillion.

According to a Coinbase report, Ethereum transaction volume reached $1.4 trillion in the first half of 2021, a 1,461% increase over the same period last year. This growth rate of Ethereum transaction volume recorded $2.1 trillion, a 489% increase from the same period of the previous year, significantly exceeding the growth rate of Bitcoin transaction volume.

In addition, as the price of Ethereum soared in May 2021, the price of Ethereum per unit exceeded $4,000. It is reported that such a price surge is influenced by DeFi (Decentralized Finance), one of the characteristics of Ethereum.

DeFi is a blockchain-based financial infrastructure built on a smart contract platform represented by Ethereum, which is characterized by high transparency and equal authority, attracting attention as an alternative to the existing financial system.

According to the report, DeFi was mainly attracting individual investor attention in 2020, but in the first half of 2021, DeFi attention surged, according to institutional investors. The number of DeFi wallets will start to rise sharply from around January 2020, and will exceed 2 million in 2021 and reach 3 million. It is pointed out that this rising interest in DeFi has caused an increase in Ethereum transaction volume. Related information can be found here.