The total transactions on the Ethereum network tore through that of Bitcoin by more than fourfold in 2022, data from DollarGeek has shown.
Data from Nasdaq and Ycharts have also shown that there were 338% more Ether transactions in 2022 (408.5 million) than Bitcoin transactions (93.1 million).
This notwithstanding, Bitcoin managed to retain its crown when it comes to online search interest, according to google trend searches. About 28.41 million people googled Bitcoin during the year.
More details on this: The Ethereum blockchain averaged a daily transaction count of around 1.1 million for ETH, while that of Bitcoin’s network stood at 255,000 for BTC.
Although the Ethereum network led the charge, transaction volumes on the Bitcoin network were steadier and more periodic than on the Ethereum network, which experienced much more volatility in transaction volumes.
This was due to spikes in demand at certain times such as NFT launches and other gas fee-intensive events such as XEN minting.
More on Ether’s performance: Ether, the native token of the Ethereum network, has seen its supply drop since October 8., 2022 which marked the Ethereum network’s first deflationary move.
- The deflationary move happened when the network switched from proof-of-work (PoW) to proof-of-stake (PoS) via the Merge in September 2022.
- After the update, a portion of the Ethereum network gas fee, otherwise known as the transaction fee, is permanently removed from the Ether circulation. Simply put, more ETH gets burned in a high-demand environment.
- We began to see the Ethereum network’s deflationary functionality after October 8, when a new crypto project named XEN Crypto increased network traffic. At the time, XEN Crypto accounted for the burning of 4,490 ETH tokens against 16,690.52 ETH tokens on the day, which represents 26.90% of the total transactions burned.
Bitcoin’s unending relevance: It is believed that people’s interest in Bitcoin remains relatively high as experts assess quality compared to other crypto assets in the industry.
CNBC reported that Venture capital investor, Tim Draper, explained that weaker coins will become relics amid the ongoing crypto winter, benefitting BTC. According to him, this is an indicator that the top cryptocurrency could reach $250,000 per token.
- Ethereum’s heftier transaction volumes have continued into the new year, with the Ethereum transaction count on Jan. 2 reaching 924,614, a 300% increase compared to Bitcoin’s 229,191 on the same day, according to Bitinfocharts.
- The analyst who posted the metrics explained that he was sceptical about people saying that a “flippening,” could happen someday, and further added that those advocating for it have reason to do so now.
- A flippening occurs when one chain surpasses a higher-ranked one for the same metric, in this case, transactions and activity.
- While there is a clear distance between Ethereum and Bitcoin’s transaction volumes, the distance could be more significant than we are reading. This is because the charts do not include layer 2 transactions, which would put Ethereum even further ahead of Bitcoin for this metric.
- According to L2beat, the number of L2 transactions per second actually surpassed those on layer 1 Ethereum in mid-October and has remained above it ever since.