Ethereum Surpasses Visa: In a remarkable display of growth and mainstream adoption, Ethereum has proven yet again that blockchain technology has evolved into a formidable force in the payment industry. Despite being younger than traditional payment giants like Visa, Ethereum’s blockchain has processed an impressive $3.01 trillion in transactions, a figure that closely rivals Visa’s $3.08 trillion, according to recent data from Coingraph.
This achievement serves as a testament to the increasing acceptance and utilization of blockchain technology, which has often been unfairly associated with scammers, drug dealers, and cybercriminals. Ethereum, currently the second-largest network with a market capitalization of $227.8 billion, according to CoinGecko, is positioned just behind Bitcoin ($538.96 billion) and ahead of Tether ($82.8 billion) in terms of market value.
What sets Ethereum apart is its ability to power various financial technology solutions aimed at disrupting the global traditional finance market. Notably, decentralized finance (DeFi), staking, lending, and flash loans are just a few examples of the many solutions thriving within Ethereum’s rich and versatile environment. This adaptability and room for further development give Ethereum a significant advantage over traditional financial layers.
A report by the Ethereum Foundation’s Josh Stark revealed that Ethereum outperformed Visa in trading volume in 2021, moving approximately $11.6 trillion USD compared to Visa’s $10.4 trillion, more than double the volume of Bitcoin. Moreover, Ethereum processed 4.5 times more transactions than Visa last year.
Analyzing the latest Ethereum daily transactions, etherscan reported 968,996 transactions on May 28, with a record high of 1,932,711 transactions on December 9, 2022.
Ethereum’s appeal as a preferred network for established players interested in leveraging the benefits of blockchain technology is on full display. Even Visa, a renowned global payments leader, has recognized the potential of Ethereum and utilized its Goerli testnet to experiment with transaction-free payments. By employing a smart contract called Paymaster, Visa effectively employed account abstraction to handle complex tasks and manage transaction costs.
Cuy Sheffield, Head of Crypto at Visa, expressed enthusiasm for Visa’s deployment of the first paymaster smart contract on Ethereum’s testnet, highlighting their ongoing research and experimentation with account abstraction and ERC-4337. The ERC-4337 Ethereum standard, which achieves account abstraction without requiring a consensus-layer change, enables users to automate and bundle transactions on the network.
Visa’s interest in Ethereum was evident as early as December of the previous year when the company proposed a solution allowing Ethereum users to make automated programmable payments without the involvement of third parties. Furthermore, Visa reiterated its commitment to the crypto space in March, dismissing rumors of a halt in its crypto push due to market uncertainties. Sheffield emphasized their continued collaboration with crypto companies to enhance fiat on and off ramps and build new products that facilitate secure and compliant stablecoin payments.
Despite recent market fluctuations, the value of ETH remains resilient. At the time of writing, Ethereum was trading at $1,898, reflecting a 3% increase over the past day and a 4.5% increase over the week.
In conclusion, Ethereum’s exponential growth and its ability to rival payment industry leaders like Visa showcase the immense potential of blockchain technology. With its robust infrastructure and innovative financial solutions, Ethereum continues to redefine traditional finance and drive the adoption of decentralized technologies. As the cryptocurrency market continues to evolve, Ethereum stands at the forefront, revolutionizing payment systems and facilitating a more secure, efficient, and inclusive global financial landscape.