In parallel, fees on both blockchains fell to a minimum since January 2021 amid low demand for transactions from users. Currently, the average transaction processing fee for Bitcoin and Ethereum is $ 10.6 and $ 3.8, respectively.
However, Ethereum is currently bypassing Bitcoin in terms of the number of active addresses.
The number of active Bitcoin wallets over the past month and a half has dropped by almost 60% from 1.3 million to 500,000. While on the Ethereum blockchain, about 700,000 addresses regularly make transactions.
In June, ETH bypassed BTC twice in terms of the number of active addresses. A similar trend observed only at the beginning of 2017.
As recently as last week, Glassnode analysts drew attention to an increase in the number of Ethereum wallets interacting with DeFi protocols. The share of such addresses has increased by almost 40%.
The current situation points to promising prospects for the DeFi sector.
Bitcoin still has an edge in terms of the number of nodes, the amount of on-chain value transferred. As well as the volume of trades, and the number of Google searches.
Ethereum adoption rate has surged
Ethereum adoption rates exceed those seen in the early days of the internet. The number of addresses with a non-zero balance, according to Glassnode, is close to 40 million.
As the number of active addresses grows, so does the number of daily transactions. CoinMetrics estimates that 1.4 million transactions registered. This is three times higher than the similar indicator of the Bitcoin network – about 400 thousand.
According to Richard Chen, if the current growth rate maintained, the number of DeFi protocol users will reach 10 million by May 2022.
40 million active Ethereum users can be compared with 60 million customer accounts opened in Bank of America. While the second largest cryptocurrency by capitalization is positioned as a global settlement platform.
Five years after the formation of the genesis block, the total number of active Ethereum users of 40 million is 2.5 times higher than the number of those who joined the World Wide Web during the same period since its creation in 1989.
The long-awaited London hardfork launched on the Ropsten testnet last week on June 24. And the developers scheduled to launch on the mainnet in July.
The EIP-1559 modification will be made to the hardfork, which changes the mechanism for calculating the Ethereum transaction fee. In addition to changing the fee structure, EIP-1559 aims to implement a “base fee” burn mechanism that will eventually make the Ethereum economy deflationary. At the moment, more than 88 thousand ETH worth about $ 177 million have been burned on the Ethereum Ropsten test network.
According to experts of the blockchain company ConsenSys, the implementation of EIP 1559 will reduce the annual supply at a rate of -1.4%.
Retail and institutional demand for Ethereum has skyrocketed lately. The host of CNBC’s Mad Money show Jim Cramer said he is optimistic about Ethereum’s development as a lot of money poured into it.