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Ethereum flips bitcoin for the average weekly transfer value

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

Increase in economic activity

A recent report by analyst CoinMetrics found that Ethereum flipped bitcoin in terms of the seven-day average weekly transfer, which has now hit $ 3.08 billion, compared to $ 3.01 for BTC.

The ETH 7-day average adjusted transfer value flipped BTCs.

On September 5, the average adjusted transfer value for ETH over 7 days 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 Ethereum’s average adjusted transfer value over seven days has surpassed Bitcoin’s. Back then, economic activity was driven by the ICO market and a multitude of new blockchain projects and tokens that hit the market almost daily. Since Bitcoin was comparatively slow and expensive (back then), projects used Ethereum as a means of raising funds.

Fast forward two and a half years, and the momentum for the Ethereum economy today is DeFi. A surge in yield farming and protocol cloning has resulted in much more financial value being transferred over the Ethereum network that forms the basis of all DeFi.

According to DeFi Pulse, up to 7 million ETH were tied to DeFi Smart Contracts last week, the highest level ever. As the markets cooled, collateral was withdrawn, and that number has dropped to around 5 million ETH today. Compared to this point in the previous year, this is an increase of 138%.

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

Ethereum price rallies

As DeFi markets recover from their slump earlier this week, Ethereum prices follow suit. ETH broke out of its four-day trading range and hit a five-day high of just over $ 365.

ETH / USD. Source: TradingView

The move has brought it back above the 50-day moving average, with the closest resistance level at the $ 385 level. The crypto markets are back in the green today and Ethereum is currently leading them with a daily gain of eight percent.

This article was first published on September 10, 2020.

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