Even though Ethereum is correcting from the ATH of $4,860, there is still a high transaction volume on its network, as disclosed by Glassnode.
The crypto firm stated: “Ethereum’s transaction volume (7d MA) just reached a 5-month high of $391,959,437.60.”
The reason for the high transaction volume is an increase in use cases on the ETH network. For instance, the decentralized finance and non-fungible token industries heavily rely on the Ethereum blockchain.
Not only this, but the demand for Ethereum is heavily increased, which makes dormant coins move too. Recently, for the first time in five years, 1,82 dormant ETH coins moved.
Ethereum layer 2 is getting more investments and is gaining momentum. For example, the blockchain startup StarkWare, which specializes in the development of the second layer of ETH, recently raised $50 million in funding, bringing it to a value of $2 billion.
In August, Offchain Labs received $120 million in Series B financing for the second layer of the Ethereum ecosystem.
The second layer is a unique network that runs on the Ethereum mainnet (layer 1), but uses the powerful decentralized model provided by the first layer. As transactions continue to grow, it uses smart contracts to improve the scalability of Ethereum.
Scalability is a challenge for typical blockchain designs, because every node in the network must process every transaction. This limits the transaction processing capabilities of the entire system.
Ethereum layer 2 allows transactions to pass through without requiring each node to process the entire transaction.