Ethereum: the most requested blockchain of 2022?

Ethereum, the big winner of 2022 – The previous bullrun allowed thousands of people to discover and become familiar with the cryptocurrencies. However, not all are of the same interest. An analysis of what is happening on-chain allows us to identify the blockchains that channel the most attention.

A look back at 2022 trends through on-chain analytics

The year 2022 has just ended. Thus, many researchers have undertaken retrospective analyses identify the different trends of the last year.

This is the case with Tripolian independent researcher, who has published a comprehensive report based on on-chain analyzes of several blockchains.

Ethereum: leader in usage

Initially, Tripoli wanted to identify the blockchain to have fanned most interest in 2022. To do this, it measured the demand against the blockspacethat is, the amount of information stored in each block.

To measure this demand, Tripoli used the expenses expenses by users on every blockchain in 2022. Therefore, Ethereum comes wide in the head counting 80% of expenses spent on major blockchains.

In total, $4.3 billion were spent on fees on Ethereum in 2022. Far behind, we find the BNB chain with 745 million dollars. Bitcoin meanwhile accounts for just $141 million and ranks 4th behind 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) account for 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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The 2022 trends on Ethereum

The Ethereum network has been the focus of many narratives since its launch. In 2022 the NFTs I was there Moreover big trend of ethereum being the source of an average of 35% of the costs spent on the network.

Different trends on Ethereum over the years.
Different trends on Ethereum over the years.

For its part, Tripoli expects the NFTs it will continue to be in the spotlight in 2023. However, this focus will shift from artistic NFTs to utility-focused NFTs such as authentication NFTs.

For their part, L2’s gas consumption on L1 could stagnate in 2023, in particular following the introduction of EIP 4844, which aims to drastically reduce their consumption.

The Tron case

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

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

So while fee-generated revenue on different blockchains varied over the year, Tron’s remained relatively stable.

Average monthly fees for blockchain.
Average monthly fees for blockchain.

Level 2: The next big cryptocurrency trend

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

Tripoli identified 3 causes to this phenomenon:

  • Exchange platforms took much longer than expected to integrate L2s;
  • L1 fees have dropped significantly, reducing interest in L2s;
  • The move to proof-of-stake took precedence over the implementation of L2-compatible updates, such as eg protodanksharding.

However, the share of costs consumed from 2 layers on Ethereum continued to grow. Additionally, the use of Tier 2s continues to increase as native Ethereum transactions decrease.

Evolution of native level 2 transactions on Ethereum.
Evolution of native level 2 transactions on Ethereum.

Level 2: A Solution for Bitcoin?

Of course, second-tier solutions are not unique to Ethereum. In fact, this thesis was first born on Bitcoin with the deployment of the Lightning network. Unfortunately, she is still struggling to gain momentum.

Thus, in its report, Tripoli hypothesizes that the second-level solutions might as well help the bitcoin network on several aspects.

“Eventually, if Lightning Network can catch on and develop decentralized applications, it will go a long way in correcting the declining demand for block space on Bitcoin. »

Either way, the year 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 does not continue to grow. For this, it is essential that users are doubling down on vigilance in protecting their cryptocurrencies.

To keep your cryptocurrencies, nothing beats a Ledger wallet. Nano S and Nano X offer security and ease of use. In fact, they are compatible with the vast majority of cryptocurrencies 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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