In the ever-evolving landscape of cryptocurrency and blockchain technology, two giants stand out: Bitcoin and Ethereum. While Ethereum has earned its reputation as the king of smart contracts, decentralized finance (DeFi), and non-fungible tokens (NFTs), recent onchain data paints an intriguing picture. Despite its transactional nature, Bitcoin appears to be leading the way in user engagement, boasting more daily active users and consistently healthy network activity. In this blog post, we’ll delve into the details of this data analysis and explore the implications for both cryptocurrencies.
Bitcoin’s Dominance in Daily Active Addresses:
Artemis Terminal data from September 15 reveals a surprising fact: Bitcoin surpasses Ethereum in terms of daily active users. This might seem unexpected, considering Ethereum’s role as a versatile platform for decentralized applications and value transfer. On September 15, Bitcoin recorded over 800,000 daily active addresses, more than double Ethereum’s 378,000. While Ethereum briefly spiked to over 1 million daily active addresses on September 13, Bitcoin has maintained a steady upward trajectory since late August, while Ethereum’s daily active addresses have fluctuated significantly.
Ethereum’s Strength in Daily Transactions:
When it comes to the number of daily transactions processed, Ethereum shines. On September 15, Ethereum processed over 1 million transactions, while Bitcoin confirmed less than 600,000. However, it’s worth noting that Ethereum’s transaction count dropped from over 2.3 million on September 13. Meanwhile, Bitcoin’s daily transactions have remained steady. This data suggests that Ethereum excels in transaction volume, while Bitcoin maintains consistency.
Key Metrics for Analyzing Blockchain Health:
Daily active addresses and daily transaction counts are crucial metrics for assessing the engagement and overall health of public blockchains. They provide insights into user activity and the network’s capacity to handle transactions effectively.
The Impact of Crypto Winter on Activity:
Over the past 18 months, crypto markets experienced a significant downturn, often referred to as the “crypto winter.” Ethereum’s price dropped from around $5,000 in late November 2021 to as low as $1,500 in 2022, negatively impacting DeFi and NFT activity. Total value locked (TVL) in DeFi protocols plummeted from approximately $180 billion in 2021 to below $50 billion. Trading volumes also declined by over 90%, affecting the value of NFT-related projects like Immutable X and ApeCoin, which experienced substantial drops in value.
While Ethereum remains a powerhouse in the world of smart contracts, DeFi, and NFTs, Bitcoin’s superior daily active user count and consistent network activity indicate its robust position in the crypto space. These onchain metrics provide valuable insights into the dynamics of these two leading cryptocurrencies. As the crypto market continues to evolve, staying informed about these trends is crucial for investors and enthusiasts alike.