Will Ethereum Overtake Bitcoin In Market Dominance? Here Is What This Metric Shows
In terms of total transactions, Ethereum has outperformed Bitcoin by more than one-fourth in 2022. There are reports circulating that Ethereum may quickly surpass Bitcoin in terms of market dominance in years to come.
Ethereum Surpasses Bitcoin In Transaction Volume
Ethereum saw a surge in transactions in the just concluded 2022 that outpaced Bitcoin, the king of all transactions. However, when it comes to overall market capitalization, Bitcoin continues to hold the top rank.
Bitcoin continues to be unquestioned even with the recent rise of transactions on the Ethereum network. But can Bitcoin retain this status in the coming years?
According to Nasdaq data, 409 million transactions were registered on the Ethereum network, whereas just 93 million transactions were recorded in Bitcoin. According to this report, Ethereum outperformed Bitcoin by more than 300% in terms of transaction volume.
In terms of static, Ethereum has more than one million daily transactions compared to Bitcoin’s 250,000.
However, despite the vast numbers and counts recorded, there has been documented volatility in Ethereum transactions.
Some of the network’s transaction rates were connected to demand for NFTs on the platform.
Bitcoin transactions were, however, more stable because most network operations involved trading with the cryptocurrency, either buying, selling, or transferring Bitcoin from one wallet to another.
Statistical data for 2023 indicates Ethereum triumphing with 900,000 transactions on its network to 230,000 transactions on Bitcoin’s, a more than 50% gap.
Can Ethereum Take The Number One Spot?
An analyst once predicted that after Ethereum switched from the proof of work consensus mechanism to the proof of stake consensus mechanism, it would dethrone Bitcoin.
With the recent events and surge in transactions, many have reason to believe that this could truly happen and Ethereum could take over the entire market and gain total dominance.
Furthermore, not all transactions were taken into consideration; layer 2 transactions, which would have easily put Ethereum far ahead of Bitcoin, were not recorded.
The volume of transactions per second in Layer 2 networks surpassed that of Layer 1 in 2022, according to analytics that track both Layer 2 and Layer 1 activities on the Ethereum network.
When compared to the Bitcoin network, these statistics reveal a higher volume and rate of activity on the Ethereum network.
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