From developer and decentralized application (dApp) counts to progress along its roadmap to general public awareness, there are many metrics that may be used to measure Ethereum’s progress over time. Ethereum is making strides in its development and adoption, and one of the most popular metrics used to measure its progress is transaction count. While transaction counts have decreased by 26% since May 2021, this does not mean that Ethereum is in decline. In fact, Ethereum is following its rollup-centric roadmap, which focuses on outsourcing execution to layer 2 rollups for improved performance.
When taking into account both mainnet and layer 2 transactions, the total Ethereum ecosystem transactions have increased by 146% over the last two years. This shows that usage of Ethereum is rapidly increasing and that it is progressing along its roadmap as intended.
Ethereum is continuing to move in the direction of off-chain execution with its next upgrade, which includes proto-sharding. This will expand Ethereum’s data availability capabilities and improve the layer 2s with increased decentralization and new paradigms around interconnectivity and shared security. These improvements will enable new use cases and functionality, creating a virtuous cycle.
The rising ecosystem transaction counts indicate that Ethereum is on its way to becoming the world’s settlement layer.