Bitcoin Outpaces Ethereum in User Engagement, But Trails in Transaction Volume
Key Insights:
- Bitcoin’s active addresses double Ethereum’s, signaling user engagement dominance.
- Ethereum processes over 1M daily transactions, dwarfing Bitcoin’s count.
- Despite market dips, technical indicators suggest Bitcoin’s bullish potential towards $27,000.
Despite Ethereum’s dominance in smart contracts, DeFi, and NFTs, Bitcoin is stealing the limelight regarding daily active users. Data from Artemis Terminal on September 15 reveals that Bitcoin, primarily a transactional layer, boasts more daily active users than Ethereum. This is noteworthy, especially considering Ethereum’s pivotal role as a valued conduit and a hub for decentralized applications.
Bitcoin’s Active Addresses Double That of Ethereum
On September 15, Bitcoin recorded over 800,000 daily active addresses. In contrast, Ethereum had just over 378,000. This disparity became even more pronounced compared to September 13 data, which showed Ethereum activating over 1 million addresses. However, Bitcoin’s numbers remained consistent, with around 743,000 addresses. Since late August, Bitcoin’s trajectory has been upward, while Ethereum’s figures have seen significant fluctuations.
BTC vs. ETH daily active addresses: (Source: Artemis Terminal data)
However, Ethereum has its feather in the cap. As of September 15, the platform processed over 1 million daily transactions. Bitcoin, on the other hand, confirmed fewer than 600,000. This gap widened further on September 13, with Ethereum processing a staggering 2.3 million transactions. Artemis Terminal’s data indicates that, on average, Ethereum’s daily transactions have surged over the past three months, while Bitcoin’s have remained steady.
BTC vs. ETH daily transactions: (Source: Artemis Terminal data)
Crypto Winter Impacts DeFi and NFT Activity
The past 18 months have witnessed a decline in crypto activity. Ethereum’s value plummeted from around $5,000 in late 2021 to a mere $1,500 in 2022. This decline adversely impacted both the DeFi and NFT sectors.
According to DeFiLlama, the total value locked in DeFi protocols now hovers below $50 billion, a significant drop from 2021’s $180 billion. Additionally, trading volumes have nosedived by over 90%, affecting the value of NFT projects like Immutable X and ApeCoin. For instance, APE’s value has decreased by 96% from its peak.
Bitcoin’s Bid Dominance and Market Dynamics
Despite recent challenges, Bitcoin’s path to $27,000 seems more likely than ever. The digital currency’s order book has seen a shift. Bids, or buy orders, now surpass asks or sell orders. Consequently, this suggests a rising demand. It indicates a market ready for an upward move.
In the past day, Bitcoin encountered bearish winds. It couldn’t surpass an intra-day peak of $26,699.72. Hence, the price dropped to $26,240.70. However, this level serves as a buffer against further declines. If Bitcoin can’t maintain the $26,240.70 support, the next one is at $26,000. A breach here might push it to the $25,800 support. But a bullish move above $26,699.72 could change the game. It might propel Bitcoin closer to $27,000.
According to CoinMarketCap, Bitcoin traded at $26,528 at press time, showing a 0.44% decline in the last 24 hours.
Additionally, Bitcoin’s market cap declined by 1.1%. It now stands at $514.28 billion. Its trading volume over 24 hours also fell by 23.45%. It’s now at $10.42 billion.
Technical Indicators Point to a Bullish Future
On the BTC/USD chart, the Chaikin Money Flow (CMF) stands out. With a current score of 0.03 and rising, it hints at increased buying. If the CMF crosses 0.05, it would strengthen the bullish outlook.
The stochastic RSI is noteworthy. If it rises, it suggests that Bitcoin might be oversold. A movement beyond 20 in this metric indicates increased buyer interest, hinting at Bitcoin’s potential upward trajectory.
Despite short-term challenges, Bitcoin’s future looks bright. With strong support and positive indicators, its journey to $27,000 seems promising. The cryptocurrency world watches with bated breath, awaiting its next move.
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