HomeBITCOINBitcoin outperforms Ethereum in daily active addresses despite trailing in transaction count

Bitcoin outperforms Ethereum in daily active addresses despite trailing in transaction count

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Ethereum may be the leader in smart contracts and the main platform for decentralized finance (DeFi) and non-fungible tokens (NFTs) activity, but data on the blockchain shows that Bitcoin has a higher level of user engagement. This can be measured by the number of daily active users and the number of daily confirmed transactions, which indicates that the network activity is at a healthy level.

Bitcoin Has More Daily Active Addresses than Ethereum

On September 15, according to data from Artemis Terminal, Bitcoin had more daily active users compared to Ethereum, despite being primarily used for peer-to-peer (P2P) value transfers between addresses. Ethereum also serves as a platform for trustless and automated decentralized applications (dapps) and allows assets to be moved, similar to Bitcoin. Some popular decentralized exchanges like Uniswap process billions of dollars’ worth of transactions every month.

On September 15, Bitcoin had over 800,000 daily active addresses (DAA), which was more than double the number on Ethereum, which stood at slightly over 378,000. Only on September 13, there was a slight change with over 1 million addresses activated on Ethereum.

Ethereum price on September 15: Source: ETHUSDT on Binance, TradingView

However, the number of DAA on Ethereum has been falling sharply, while Bitcoin has maintained an upward trajectory since late August. During this time, Ethereum’s DAA has been fluctuating heavily, as seen from the rise and fall on September 13 and onwards.

Daily active addresses Artemis Terminal dataDaily active addresses: Artemis Terminal data

Ethereum Processes Over 1 Million Transactions Everyday

Ethereum excels in the number of daily transactions processed. As of September 15, the smart contract platform had processed over 1 million transactions, while Bitcoin confirmed less than 600,000.

Even at this level, Ethereum processed less than half of what it did on September 13, when the network handled over 2.3 million transactions. On the other hand, Bitcoin’s daily transactions have remained steady, while Ethereum’s have, on average, increased over the past three months, according to Artemis Terminal data.

Daily transactions Artemis Terminal dataDaily transactions: Artemis Terminal data

Daily active addresses (DAA) and daily transaction count are important metrics used by on-chain analysts to assess the level of engagement and health of public blockchains.

During the past 18 months, activity has significantly decreased due to the decline in asset prices during the crypto winter. Ethereum’s drop from around $5,000 in late November 2021 to as low as $1,500 in 2022 had a negative impact on DeFi and NFT activity.

According to DeFiLlama, the total value locked (TVL) of DeFi protocols has stabilized below $50 billion, down from around $180 billion in 2021. Additionally, trading volume has dropped by over 90%, affecting the value of NFT-related projects like Immutable X and ApeCoin. For example, APE is down 96% from its peak.

Feature image from Canva, chart from TradingView

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