- Ethereum network outperformed Bitcoin more than fourfold with 408.5 million ETH transactions in 2022.
- Bitcoin still remains the most searched cryptocurrency in 2022 and reported steadier transaction volume in its network.
- Ethereum's diversified ecosystem and web3 investment opportunities set it apart from the largest asset by market capitalisation.
The Ethereum network surpassed Bitcoin in total transaction volume in 2022. While the largest asset by market capitalization managed to retain its dominance in online search interest and steady transaction
Experts compare large market cap cryptocurrencies in web3 like Bitcoin and Ethereum and conclude that ETH has a better underlying economic model, compared to other assets. Projects and protocols in Ethereum’s ecosystem with the token economics (real value) and right product market fit could add new features and earning opportunities and continue to garner interest from investors.
Also read: Ethereum whales scoop up Shiba Inu tokens; here’s what to expect
Ethereum network takes the lead with higher investment opportunities than Bitcoin
Ethereum network outperformed Bitcoin in total number of transactions on its blockchain in 2022. ETH network tackled 408.5 million transactions against 93.1 million on Bitcoin’s blockchain. Based on data from Nasdaq and Yahoo charts, the average daily transactions were around 1.1 million for ETH and 255,000 for BTC.
Ethereum and Bitcoin transaction count in 2022
The transaction volume on Bitcoin was steadier and more periodic than Ethereum. Data reveals higher volatility in transaction volumes on Ethereum’s blockchain was due to spikes in demand at NFT launches and minting of blue-chip digital collectibles.
Interestingly, Ethereum’s higher transaction volume can be attributed to a higher number of investment opportunities in the altcoin’s ecosystem.
Ethereum offers massive web3 investment opportunities, unlike Bitcoin
Fred Wilson, a Venture Capitalist in New York argues that web3 firms are likely to react to the 2023 recession similar to traditional finance firms. Typically, traditional finance firms raise funds to tackle the negative impact of recession and sustain their business. Large capitalization cryptocurrencies like Bitcoin and Ethereum could attract more interest from investors, however, of the two, the outlook on ETH is more bullish.
Wilson argues that ETH has the best underlying economic model of any web3 asset. Web3 sector is expected to go through a triage and projects with no product market fit, weak or no token economics could fail in 2023.
While there is a large overhang in web3, the VC expects a spike in selling pressure on web3 tokens for at least the first quarter of 2023. The Ethereum ecosystem has several digital collectibles, art, and real-world utility projects in web3 that continue to garner attention from investors. This tilts the scales in favor of ETH as the altcoin offers massive investment opportunities in web3 to investors, through crypto winter, the spreading FTX contagion and the anticipated recession in 2023.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.