The on-chain activity of the Ethereum (ETH) ecosystem is going through a higher moment than that of the Bitcoin (BTC) network. After a few days of parity, the network created by Vitalik Buterin surpassed that of Satoshi Nakamoto in the number of new active addresses.
Ethereum reached in August 2024 the nearly 282 million unique active addresses on its network, which implied an increase in this measurement of 2% monthly. In contrast, this metric in Bitcoin suffered a slowdown and grew by 1%, recording 54 million unique active addresses in the last month.
While the trend had leveled off during the last days of August, during the first days of September it turned back in favor of Ethereum. The market’s preference for ETH at the expense of BTC in this metric has been gaining strength since April 2024.
This circumstance reflects a fact rarely seen in the history of these cryptoassets, since, over the years, BTC has been solidly above ETH in this metric.
This information can be seen more clearly in the following graph provided by the online analysis site Bit Info Charts.
Since April 2024, the number of active addresses on ETH has grown at the expense of its BTC counterpart. Source: Bit Info Charts.
In turn, this increase in user interest in the Ethereum network (or its decrease in the Bitcoin network) is reflected in the number of daily transactions. In this case, we should not limit ourselves to the aforementioned period of 2024, but rather ETH has far surpassed BTC in daily transaction volume since even before.
The following image taken from the platform Artemis describes what was explained in the previous paragraph. The blue line represents the number of daily transactions and the orange line represents the number of Bitcoin transactions.
Historical daily transaction volume on the Ethereum and Bitcoin networks. Source: Artemis.
What is the reason for Ethereum’s “superiority” over Bitcoin?
It should be noted that this type of event is a response to multifactorial issues, and it would be inappropriate to focus on a single reason to explain the momentary preference for one network over another. A number of reasons can be cited to try to answer the question posed.
Firstly, according to on-chain analytics platform Santiment, he increase of the use of stablecoins on the chain Ethereum It would be one of the foundations of the disparity between Bitcoin and Ethereum. The total number of USDT holders reached 6 million users on Ethereum. This figure represents a 4% increase compared to the last three months.
For its part, the original Bitcoin network does not support stablecoin transactions, forcing users to opt for other applications that are less known and less practical for them. For example, the networkBlockchain/”> Omni Layera smart contracts platform built on Bitcoin.
Secondly, during the last months of 2024 There has been a noticeable increase in Ethereum’s L2 networks (Arbitrum and Base especially) reported by CriptoNoticiasThis increase coincides with the period when unique active ETH wallets began to surpass BTC ones (from April 2024 to present).
This growth of L2s, which led to a huge user attraction, is based on the low transaction costs offered by these networks. So much so that the number of active users and daily transactions on L2 surpassed that of Ethereum’s L1.
Finally, and in line with what was stated above, throughout 2024 the number of Ordinals registrations on the Bitcoin network has decreased significantly, according to The Block Datafrom January 2024 to date.
Graph that expresses the decrease in Ordinals registrations in Bitcoin. Fountain: The Block Data.
For their part, the NFT-bitcoin/” target=”_blank” rel=”noreferrer noopener”>Ordinals NFTs are a protocol that allows for the creation, tracking, and storage of digital assets such as NFTs on the Bitcoin blockchain. This recent development brought new functionality to the network, traditionally focused on being a payment system or store of value.
Ordinal transactions were presumably a strong reason for Bitcoin wallet activation. However, these and other registrations are at their lowest point of the year in terms of transactions.
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