Ethereum scored a huge win on Tuesday as it surpassed Bitcoin for the first time in a key cryptocurrency metric.
A strong price boost on Tuesday pushed Ethereum past Bitcoin in the number of daily active addresses, crypto analytics firm Santiment revealed in a report on The Independent.
ETH is up 4.36 percent in the last 24 hours, trading at $2,273.78 a coin, Coindesk reported.
Daily active addresses indicate that the number of Ethereum users have matched, if not overtaken that of Bitcoin. Santiment data showed that Ethereum crossed Bitcoin in terms of active wallets. Ethereum now has 651,560 wallets against 597,280 Bitcoin wallets, Tech Story emphasized.
Ethereum Value: Surge in Active Addresses Due to Lower Transaction Fees
This development came as Ethereum fees dropped to $2.15, its lowest since December 2020, The Independent reported.
Since the crypto bull run in May, average fees soared to nearly $70, but they have since dropped dramatically due to a market correction. With the Ethereum blockchain stepping near a 2.0 upgrade, these fees are expected to drop further, eToro market analyst Simon Peters noted.
The upgrade, Peters said, would lead to faster and cheaper mining, improving the network's environmental impact.
However, Tech Story revealed contradicting data from analytics firm Glassnode that underscored Bitcoin's continuing lead in the number of active addresses against Ethereum. Based on Glassnode data, Bitcoin had 977,195 active addresses as of May 31, as against Ethereum's 643,037.
For what it is worth, though, Ethereum has long been seen to overtake Bitcoin due to its immense use cases, particularly the decentralized finance (DeFi) apps and non-fungible token (NFT) trading on its blockchain--with the lower transaction fees and upcoming network upgrades further boosting its chances.
Ethereum skyrocketed to its all-time high in May, but the cryptocrash in June--primarily sparked by China's cryptocurrency ban and closure of Bitcoin mining sites in Sichuan--led to its free fall from $4,200 to $1,800.
Ethereum Prices 800% Higher Year-on-Year, May Surpass Bitcoin Market Cap
Prices have since rallied and is currently in the green. Ethereum is actually 800 percent higher year-on-year, The Independent added.
In contrast, Bitcoin has continued its slide and has yet to achieve a similar level of recovery as that of Ethereum. Bitcoin dropped further by 3.39 percent in the last 24 hours, settling at $34,793.44 a coin, according to Coindesk.
This continuing drop in Bitcoin value has led to the token's worst second quarter in its history, as it has slid from its record-high in April to half its price.
If the trend continues and Ethereum active users indeed surpass Bitcoin's, ETH could then next cross Bitcoin market capitalization, Tech Story underscored. Ethereum's current positive boost and Bitcoin's severe fall would most probably lead to ETH dominating the cryptocurrency market eventually, it added.
Disclaimer: This article is not to endorse Ethereum or any cryptocurrency for that matter. Cryptos remain volatile in nature and is a risky investment.