Ethereum transaction volume tops Bitcoin – but does that matter?

One of the most heated topics of discussion in the cryptocurrency space is whether Ethereum provides more value than Bitcoin due to its higher number of transactions.

Because “value” can refer to both market cap and transaction volume, discussions can quickly escalate.

Today, my goal is to take a look at Bitcoin and Ethereum in terms of transaction volumes and price appreciation.

Is there a link between price and the number of transactions?

If not, what could the long-term price impact of more transactions be? Does it matter at all?

Let’s find out below.

Price appreciation and increased utility

Even though Bitcoin has always been the top coin in terms of total market cap, the same cannot be said about transaction volumes.

Arguably, Bitcoin maximalists don’t understand the importance of usability since BTC is seen currently as a store of value. Bitcoin does not require high transaction throughput or large transaction volumes (like P2P digital cash would) if it is a store of value.

Moreover, since there is little correlation between actual usability and price appreciation – look at EOS for example – it’s easy to dismiss the importance of higher transaction volumes.

Nevertheless, I’m a strong believer that long-lasting network effects are given a boost by an increasing number of transactions.

Before I dive into a transaction volume comparison, let’s take a minute to understand the current panorama:

  1. Bitcoin has over 70% of the total cryptocurrency market cap (calculated as Bitcoin dominance)
  2. Ethereum has about 8% of the total market cap

As such, we could argue that Bitcoin also dominates in terms of transaction volume since it has the most price appreciation, right?

Ethereum dominates usability

Interestingly, Ethereum has dominated Bitcoin in terms of…

Source Link