The total number of Ethereum transactions outnumbered Bitcoin transactions in 2022. The volume of transactions on the Ethereum chain outpaced Bitcoin but the search volume for Bitcoin on the internet zoomed past ETH. According to data from Nasdaq and Ycharts, there were 338% more transactions on Ethereum compared to Bitcoin in 2022. ETH transactions amounted to $ 408.5 million and BTC amounted to $ 93.1 million.
Source: ETH vs BTC transaction volumes – Nasdaq/Ycharts via Reddit
While the transaction volumes were high on Ethereum, the consistency and the momentum on Bitcoin were higher in comparison to Ethereum. As a matter of fact, Ethereum showcased more volatility than Bitcoin. This was primarily due to periodic demand for the asset required for NFT project development and other events that require huge amounts of gas (transaction fee in gwei).
According to data from Bitinfocharts, Ethereum’s high gas consumption volumes continued into the new year. The transaction count on January 2, 2023, crossed 924,614 – which is a whopping 300% spike as compared to Bitcoin which recorded 229,191.
The analyst who posted the analysis on Reddit was rather diffident about the remarks and sentiment tied to flippening. He added that those who are advocating it may have personal interests. Flippening happens when a chain surpasses another high ranked for a certain metric. In the battle of Ethereum and Bitcoin, the metric is transactions and activity. On January 1, 2023, a newsletter from “In Bitcoin, We Trust ” revealed that BTC received more queries and searches on Google search engine in 2022. There were 28.4 million monthly Google searches for Bitcoin, across the world.
According to a report covered by Cointelegraph on December 23, 2022 Ethereum didn’t make it to the top three crypto assets. These spots were taken by popular internet-inspired meme coins Dogecoin (DOGE) and Shiba Inu (SHIB). Ethereum sat on the fourth spot in terms of popularity with 3.8 million global monthly searches, according to the data.
Bitcoin’s price has coiled by 78% from an all-time high in 2021. Ethereum, the second largest crypto asset by market cap saw an approximately 82% retracement from its all-time highs.
According to a crypto analyst, it is best to avoid “social media sentiment” and take the historical patterns of crypto into account. In 2022, Ethereum merged with Beacon chain to shift from a proof of work consensus mechanism to a proof of stake model. The price volatility since the day of merge completion has been highly volatile. The next Bitcoin halving is expected to happen in 2024 and with Ethereum’s Shanghai upgrade in 2023 the tables for both assets could turn and have a neck-to-neck competition.
While there is a large ledge in web3 crypto venture capitalists will expect high selling pressure on web3 tokens in the first quarter of this year. The market may have seen a prolonged bloodbath but the developers are keen on entering the ecosystem and building it brick by brick.
With FTX’s insolvency, LUNA’s collapse, and many lending and consulting firms going bankrupt 2022 was quite a painful year for investors and institutions. With inflation and recession taking their course to mellow down, the markets may consolidate by the end of 2023.