Ethereum processed the equivalent of $11.6 trillion in transactions last year, while Visa processed about $10.4 trillion in transactions. As a result, the crypto with the second largest market capitalization bypassed VISA, one of the world’s leading digital payments.
However, 2021 was not an easy year for Ethereum if we take into account that the network faced numerous challenges, including scalability and competition from other smart contract platforms.
In spite of this, Ethereum has managed to succeed and stay on top thanks to its innovative protocols. Ethereum activated the London hard fork EIP-1559 in August 2021. This upgrade resulted in 4,500 ETH being burned within 24 hours (at 2 ETH per minute), and gas fees were also cut down.
Ethereum also rolled out layer 2 scaling solutions with this update. All this has helped increase the transactional ability of Ethereum.
Last year, Ethereum layer 1 could process more than 1.2 million transactions per day, or 15 transactions per second. These figures increased significantly with level 2.