Ethereum: the most wanted blockchain of 2022?

Ethereum, the big winner of 2022 – The previous Bullrun enabled thousands of people to discover and familiarize themselves with it cryptocurrencies. However, not everyone is subject to the same interest. An analysis of what is happening on the chain allows us to identify the blockchains that channel the most attention.

A look back at 2022 trends through on-chain analysis

The year 2022 has just ended. Thus, many researchers have undertaken retrospective analyses identifying the various trends of the past year.

This is the case of Tripolian independent researcher who has published a report comprehensive based on on-chain analysis of various blockchains.

Ethereum: Leader in usage

Initially, Tripoli wanted to identify blockchain insulting most interest in 2022. To do this, he measured demand vis-à-vis space blocksthat is, the amount of information stored in each block.

To measure this demand, Tripoli used expenses spent by users on each blockchain in 2022. Thus, Ethereum comes wide at the top counting 80% of expenses spent on major blockchains.

In total, 4.3 billion dollars were spent on Ethereum fees in 2022. Way back, we find The BNB chain with 745 million dollars. Bitcoin meanwhile accounts for only 141 million dollars and is positioned in the 4th place after the Tron network.

“The dominance of smart contract chains is even more evident, with Binance’s Smart Chain accounting for 80% of the remaining fees (after Ethereum), while the largest simple transfer models (Bitcoin, Dogecoin and Litecoin) represent only negligible fees in comparison. »

Fees spent by users on blockchains in 2022.

“Without significant adoption of digital currencies globally, demand remains focused on blockchain infrastructure and digital asset applications. »

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2022 Trends in Ethereum

The Ethereum network has been at the center of many stories since its inception. In 2022, NFT have been there more big ethereum trend being the source of an average of 35% of the costs spent on the network.

Different trends in Ethereum over the years.
Different trends in Ethereum over the years.

For its part, Tripoli predicts that NFT will continue to be in the spotlight in 2023. However, this focus will shift from feature NFTs to service-focused NFTs such as authentication NFTs.

For their part, gas consumption in L1 from L2 may stagnate in 2023, especially after the implementation of EIP 4844, which aims to drastically reduce their consumption.

The case of Tron

The case of blockchain the throne it is interesting to explore. Indeed, despite the virtual absence of blockchain in the interest of the community, it is still witnessing a thriving activity.

This activity is mainly due to the use of the network as USDT transfer vector. Indeed, while blockchains like Ethereum have very high fees for transferring small amounts of USDT, Tron has managed to do well by having much lower fees.

So while the revenue generated from fees on different blockchains has fluctuated over the year, Tron’s has remained relatively stable.

Average monthly fees by blockchain.
Average monthly fees by blockchain.

Layer 2: the next big crypto trend

Although many players in the ecosystem predicted a significant boom in second-tier solutions in 2022, the latter have not yet had the expected enthusiasm.

Tripoli identified 3 reasons to this phenomenon:

  • Exchange platforms took much longer than expected to integrate L2s;
  • Fees for L1 have dropped significantly, reducing interest in L2;
  • The switch to stock authentication has taken precedence over the deployment of L2-friendly updates such as protodanksharding.

However, the part of costs incurred from layers 2 in Ethereum continued to grow. Additionally, Layer 2 usage continues to grow as native Ethereum transactions decline.

The evolution of layer 2 facing native transactions in Ethereum.
The evolution of layer 2 facing native transactions in Ethereum.

Layer 2: a solution for Bitcoin?

Of course, second layer solutions are not exclusive to Ethereum. Indeed, this thesis was first born in Bitcoin with the establishment of Lightning Network. Unfortunately, it is still trying to gain momentum.

Thus, in its report, Tripoli hypothesizes that second layer solutions can also help the bitcoin network in some aspects.

“Ultimately, if the Lightning Network manages to gain a foothold and develop decentralized applications, it will go a long way to correcting the decline in demand for Bitcoin blockchain. »

Either way, 2023 promises to be full of twists and turns for the cryptocurrency ecosystem. Let’s hope, however, that the gangrene represented by hacks and other scams doesn’t continue to grow. For this it is essential that users are redoubled vigilance in protecting their cryptocurrencies.

To keep your cryptos, nothing beats the Ledger wallet. Nano S and Nano X offer safety and ease of use. Indeed, they are compatible with the vast majority of cryptos and networks. They are an absolutely essential alternative to all exchanges that offer to hold your assets for you. Remember, “Not Your Keys, Not Your Coins” (commercial link)!

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