Ethereum further reduced its total transactions in February as Binance Smart Chain increased transactions by 378% compared to the blockchain network backed by the first smart contracts.
Last month was a tough month for the Ethereum blockchain. According to Be, the largest chain in terms of locked totals (TVL) was able to record approximately 32,739,456 transactions during February.[In]Cryptographic research.
For readers who are new to the field of blockchain technology, this number is impressive when compared to the total number of transactions in other chains. That said, Ethereum was a hit in terms of the number of transactions in February.
By the end of January 2022, the total number of transactions was 36,851,128. This means that in February about 4,111,672 were eliminated from the January figures, reducing total transactions by 11% in 28 days.
Source: Etherscan
Ethereum transactions have decreased since 2021
The total number of Ethereum transactions over the past year has decreased by 7% since February 2021 and the total number of transactions recorded was 35,758,516.
Source: Etherscan
Apart from this, Ethereum peaked in May 2021. This was the time when the Ethereum Ecosystem (ETH) native coins exceeded $ 4,000 for the first time and reached a new milestone. This was driven by the increased use of decentralized protocols and applications (dApps) on the Ethereum blockchain, as many users took advantage of decentralized lending, exchange, and yield aggregation protocols. This had a positive impact on the total number of Ethereum transactions.
The total number of transactions on May 31, 2021 was 45,055,042. This was an increase of 26% from February 2021.
Source: Etherscan
In January 2022, the highest daily transaction value for Ethereum was 1,283,346. The daily highs for transactions on Ethereum in February 2022 increased by 4% from the highs on the highest day of the first month of 2022. The highest price for the day of February 2022 was 1,343,869.
Binance smart chains continue to outperform Ethereum across transactions
Ethereum recorded 32 million transactions in February, while Binance Smart Chain recorded approximately 156,512,579 (156 million) transactions. After being affected by the bearish involvement at the beginning of the month, Russia’s invasion of Ukraine towards the end of February deepened the bearish cycle. With Binance Smart Chain, total transactions have decreased by 18% since January 2022.
Source: BscScan
In January 2022, Binance Smart Chain generated a total of approximately 192,096,842 (192 million) transactions. In contrast to the decrease in Ethereum year-on-year transactions in February, BinanceSmartChain increased its February monthly transactions year-on-year.
In February 2021, 51,983,356 (51 million) transactions were recorded, increasing the 2022 figure by 201%.
Source: BSC Scan
As of March 2022, Ethereum is the largest in terms of locked totals and BinanceSmartChain is the third in terms of TVL. The two chains feature the most vibrant ecosystems in the universe today, each with major decentralized applications such as Uniswap (UNI) and PancakeSwap (CAKE). However, despite Ethereum’s position on TVL, Binance Smart Chain remains a clear favorite in terms of user activity reflected in total transaction count.
Prior to the February 2022 decline in total transactions, Binance Smart Chain transactions outperformed Ethereum by 421%. In addition to this, BSC surpassed Ethereum by 45% in February 2021 and Binance Smart Chain was clearly a favorite in February 2022, with 378% more transactions than Ethereum.
In addition, Binance Smart Chain reached a record high in total monthly transactions in November 2021 at approximately 391,847,392 (391 million). Looking at Ethereum’s aforementioned monthly highs in May 2021, the BSC still dominated Ethereum by 769% in terms of record highs.
Source: BSC Scan
What is the cause of the decrease in transactions?
The main reason for this decrease is the decrease in the volume of Binance Smart Chain and Ethereum decentralized applications due to the decrease in the number of transactions.
Curve (CRV), the largest dApp in terms of locked totals, runs on the Ethereum blockchain. The total number of CRV transactions in February 2022 was approximately 45,468. According to Be, this was a 34% decrease from 69,281 in January 2022.[In]Cryptographic research.
Apart from this, the total number of Curve transactions decreased by 21% from 58,051 in February 2021.
Source: Messari
One of the most vibrant areas of cryptocurrency last year is non-fungible tokens (NFTs). The decrease in the total number of transactions affected the NFT marketplace OpenSea, which is mainly running on Ethereum. Due to the overall transaction decline, OpenSea’s volume plummeted 27% from $ 4.95 billion in January 2022 to $ 3.57 billion in February 2022.
On the other hand, Binance Smart Chain also reduced the number of transactions, mainly due to the decrease in usage of Pancake Swap, which is the top dApp. Eventually, due to the decline in the number of transactions, decentralized exchange trading volumes fell from $ 25.25 billion in January to $ 15.73 billion, down 37% in 28 days.
Source: Nomics
Unfortunately, the decline in total trading volume is reflected in the prices of their respective native assets, ETH and BNB.
ETH opened on January 1, 2022 at $ 3,683.05 and increased by 5% to a yearly high of $ 3,876.79 on January 4. ETH is currently trading at a price 27% below the annual high recorded in January. Areas of $ 2,308.91 and $ 3,185.52 within the last 30 days.
BNB opened on January 1, 2022 at $ 511.91 and increased by 4% to reach its annual high of $ 533.37 on January 2. BNB is trading at a price 27% below the year-to-date highs recorded at the beginning of the year. .. BNB has been trading in the range of $ 324.48 to $ 433.43 within the last 30 days.
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