Bitcoin Leads Ethereum in Daily Active Addresses
While Ethereum dominates the world of decentralized finance (DeFi) and non-fungible tokens (NFTs), recent onchain data suggests that Bitcoin has the upper hand when it comes to user engagement. According to Artemis Terminal data, Bitcoin has more daily active users than Ethereum, despite primarily being a transactional layer for value transfer.
Although Ethereum serves as a platform for trustless applications and asset movement like Bitcoin, it falls behind in terms of daily active addresses. On September 15, Bitcoin had over 800,000 daily active addresses, more than double the number of Ethereum’s 378,000. The only exception was on September 13 when Ethereum experienced a slight increase with over 1 million activated addresses.
Ethereum Processes Over 1 Million Transactions Everyday
On the other hand, Ethereum excels in the number of daily transactions processed. As of September 15, Ethereum had confirmed over 1 million transactions, while Bitcoin lagged behind with less than 600,000. However, this is still a significant drop compared to September 13 when Ethereum processed over 2.3 million transactions. In contrast, Bitcoin’s daily transaction count has remained steady.
Daily active addresses and transaction count are crucial metrics for analyzing the engagement and health of public blockchains. In the past 18 months, blockchain activity has declined due to falling asset prices during the crypto winter. The drop in Ethereum’s price from $5,000 to $1,500 negatively affected DeFi and NFT activity.
The Impact on DeFi and NFT Projects
This decline is evident in the total value locked (TVL) of DeFi protocols, which has stabilized below $50 billion compared to around $180 billion in 2021, according to DeFiLlama. Trading volume has also plummeted by over 90%, causing the value of NFT-related projects like Immutable X and ApeCoin to decrease significantly. For example, ApeCoin has experienced a 96% drop from its peak.
Hot Take: Bitcoin Takes the Lead in User Engagement, But Ethereum Dominates DeFi and NFTs
While Bitcoin may have more daily active users and healthier network activity, Ethereum remains the primary hub for decentralized finance and non-fungible tokens. Its ability to process over 1 million transactions daily showcases its scalability and utility for dapps. However, both cryptocurrencies face challenges, with Ethereum’s activity being affected by market conditions and Bitcoin’s transaction count lacking significant growth. As the crypto landscape continues to evolve, it will be interesting to see how these two giants compete and adapt to changing user demands.
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