Ethereum Usage is Now 54 Times to Bitcoin as Ethereum 2.0 Becomes the Largest ETH Holder - Blockchain.News
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Ethereum Usage is Now 54 Times to Bitcoin as Ethereum 2.0 Becomes the Largest ETH Holder

As the neck-to-neck battle between Bitcoin and Ethereum continues, the latter has emerged as the victor in terms of usage.


  • Oct 06, 2021 10:00
Ethereum Usage is Now 54 Times to Bitcoin as Ethereum 2.0 Becomes the Largest ETH Holder

Ethereum (ETH) has been witnessing an uptick in activities, which has prompted a price surge. The second-largest cryptocurrency was up by 16.31% in the last 24 hours to hit $3,379 during intraday trading, according to CoinMarketCap

As the neck-to-neck battle between Bitcoin and Ethereum continues, the latter has emerged as the victor in terms of usage. Damian Sowers, the founder of Level Frames, acknowledged:

“ETH usage is now 54X BTC. Flippening is inevitable.”

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The skyrocketing usage can be explained by the fact that Ethereum has more use cases than Bitcoin. For instance, ETH has surfaced as the backbone of various sectors like non-fungible token (NFT) and decentralized finance (DeFi), which have witnessed exponential growth in the crypto space.

For instance, the DeFi industry is a billion-dollar sector because it was recently valued at $81.85 billion. 

Furthermore, Ethereum settled transactions worth $6.2 trillion in the last 12 months. Ryan Watkins, a researcher at Messari Crypto, explained:

“In the past 12 months, Ethereum settled $6.2 trillion in transactions. This figure is up 369% compared to 2020, and was powered by a strong Q3 where Ethereum settled $1.5 trillion.”

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ETH 2.0 deposit contract is the largest Ethereum holder

According to data analytic firm IntoTheBlock:

“The Ethereum 2.0 staking contract has become the largest holder of ETH. There are now 7.84m ETH, meaning that the contract has been growing at a pace of 23,442 Ether per day, with a total 51,200 unique addresses depositing.”

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The total value locked in ETH 2.0 recently hit an all-time high (ATH) as more investments continue to trickle. 

Launched in December 2020, Ethereum 2.0 is seen as a stepping stone towards a proof-of-stake (POS) consensus mechanism from the current proof-of-work (POW) framework.

The POS algorithm allows the confirmation of blocks to be more energy-efficient and requires validators to stake Ether instead of solving a cryptographic puzzle. Therefore, scalability is expected to be improved through sharding.

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