On Monday, January 21, crypto analytics and market research firm Diar released a new report showing that the on-chain transaction value of Ethereum (ETH) has hit an all-time high in December 2018.
Last month, ETH saw transaction volumes “to the tune of over 115Mn ETH, the highest since the networks genesis”. However, Diar notes that this count is excluding the hard fork caused by DAO attack and hack, back in 2016. The report also notes that
“In terms of transaction count on-chain the ‘super computer’ has found stability since October bobbing between 16–17 million monthly transactions.”
Significant Drop In the USD Value of Transactions
On the other hand, the report goes to show that the U.S. Dollar value of the on-chain transactions has hit a 22-month low. While the transaction volume was $1.1 billion in 2017, it dropped to $815 million last year. The Diar report states:
“A 97% drop in on chain transaction value from peak in January versus December 2018 was, by and large, the cause of an 80% drop in Ethereum's price.”
The report also states that the transaction fee is unlikely to bring hinderance in its growth as the Ethereum network already has some of the lowest fees for on-chain transactions.
All Eyes On the Upcoming Constantinople Hard Fork
One of the major challenges which Ethereum is currently facing is the network scalability. Last week, the Ethereum core developer decided to launch the Constantinople hard fork by the end of February, next month.
Earlier the hard fork was scheduled to take place around mid-January. However, the launch is delayed after the smart contract audit firm ChainSecurity found a security vulnerability. The firm said that the Ethereum Improvement Proposal (EIP) 1283 implementation would create a loophole leading to reentrancy attacks wherein the attackers would continuously withdraw ETH funds.
ChianSecurity released a report in which it stated:
“The upcoming Constantinople Upgrade for the ethereum network introduces cheaper gas cost for certain SSTORE operations. As an unwanted side effect, this enables reentrancy attacks when using address.transfer(…) or address.send(…) in Solidity smart contracts. Previously these functions were considered reentrancy-safe, which they aren’t any longer”.
Last Friday, January 19, the Ethereum core-developer team released a report in which they agreed to proceed with the fork setting up the deadline for February end. For now, the developers won’t implement the buggy EIP 1283 but will introduce it in future upgrades.