It is said that the on-chain activity has increased significantly this year. Both the number of on-chain wallets and the number of transfers have been rising rapidly:
But behind this number, Ethereum, once regarded as the overlord of the chain, has gradually withdrawn from the stage:
In 2021, the scale of on-chain transfers on Ethereum is larger than that of BTC, and can even compete with the scale of stablecoins.
But by 2024, the scale of Ethereum's on-chain transfers will be only a small amount, even negligible.
On the contrary, BTC has maintained a stable share of on-chain transfers. The big brother is indeed stable.
Behind the demise of Ethereum is the rise of stablecoins; almost all of Ethereum’s lost share was eaten up by stablecoins.
In places such as North Africa/Middle East/Southeast Asia where traditional credit card payments are not very popular, the proportion of stablecoin transfers is even higher.
In developed regions such as Western Europe and North America, Bitcoin is relatively preferred for on-chain transfers.
Stablecoins are growing rapidly around the world, especially in regions plagued by inflation such as South America.
Most stablecoins are priced in US dollars. If this continues, it seems that most countries will lose the right to mint coins again.
The reason why Ethereum's on-chain transfers are dying out is that the Ethereum chain is expensive and slow, and it has a nickname called the "noble chain."
If you want to lower gas fees, you can only turn to Layer 2.
I have to say that the experience of Layer2 is really bad.
There was a saying in the chip industry earlier that Intel provided the computing power and Microsoft was responsible for consuming it.
In the era of smartphones, although the performance of ARM chips is not as good as Intel's, they are favored by smartphones because of their power saving.
As a performance fanatic, NVIDIA has gained market share in the mining and AI industries.
If there were no application scenarios such as Microsoft/smartphones/AI mining, and we only evaluated various chip companies based on parameters and dreams, it would be the same as evaluating various public chains now, with each person having his own reasons.
But as luck would have it, more and more people are using stablecoins to transfer money this year, which makes it more or less a stable application scenario.
Ethereum has revealed its true colors. Will it gradually be eliminated from application scenarios?
