People who hold two biggest cryptocurrencies by market capitalization – Bitcoin and Ethereum – use to spend their coins differently.
Ethereum holders are more likely to make smaller Ethereum transactions, the opposite to those proceeding in Bitcoins, who make payments in bigger amounts, shows the latest analysis.
According to insights of data analytic Alex Svanevik, the co-founder of the decentralized organization of data scientists and engineers D5, more than half of Ethereum holders tend to spend amounts smaller than one-tenth of Ethereum.
As seen in the chart, 55% of the transactions are made with an amount worth up to approximately $20. The number is slightly higher when including internal transactions – 58%. Moreover, it seems that the tendency is growing, since the share of transactions lower than 0.1 ETH is increasing.
The reasons behind the popularity of small transactions can be related to the usage of the Ethereum network. According to the analyst, small Ethereum transactions are mainly driven by miners, gamblers, and cryptocurrency exchanges.
Looks like small ETH transactions (<0.1 ETH) are driven by:— Alex Svanevik 🧭 (@ASvanevik) May 7, 2020
1. Mining pools
2. Gambling (ponzis?)
3. Exchange addresses
Never looked at small transactions before, so our label coverage isn't that high in this segment - yet. https://t.co/uu0z6goOn0 pic.twitter.com/mqQ0czSlWZ
Ethereum is a popular network for decentralized applications, who accommodate micro-transactions. Binance-related analytics Dappreview reported before, that industry of dApps grew over 82% during the past year. Furthermore, the category of Ethereum-based decentralized finance (DeFi) apps boomed up to nearly 800%.
Moreover, the categories that generated the biggest transaction volumes – the ones related to finances and exchanges – increased the most during the year and were the best performing. While the online gambling category remained stable – generating around $100 million – the same as in the previous year.
Meanwhile, Bitcoin holders show a tendency to spend bigger amounts on their transactions.
As the chart shows, up to 30% of Bitcoin holders spend up to 0.1 BTC, which is approximately $1000 following the current Bitcoin price, floating around $10.000.
In terms of stablecoins – the coins backed by traditional fiat currencies like the US dollar – they are most widely used in transactions worth from $100 up to $1.000. According to the chart, nearly 40% of all stablecoin transactions are made between this range of amounts.
The percentage of stablecoin payments on amounts between $1.000 and $10.000 has its strong positions as well. Nearly 20% of users choose to transfer the sums of this value.
Since numbers of stablecoin transactions grow, Ethereum becomes the dominant stablecoin value transfer platform in the cryptocurrency world. Despite the different sizes of payments, the value of average daily transactions made on Ethereum network become equal to those made on Bitcoin, according to the latest data from the blockchain analytics Messari.