Only 2 Chains Matter

tl;dr: For all of the hype, it pretty much comes down to BTC and ETH

Chris Burniske shared a tweet recently showing the amount of transaction fees occurring on the various blockchains out there.

It’s published on a site called CryptoFees and the numbers are pretty revealing.

Only Ethereum and Bitcoin matter right now. Everything else is pretty much a joke.

The others listed at the top (at least at the time of this writing) are all running on Ethereum, with Uniswap having passed Coinbase Pro in daily volume.

Uniswap is an automated market maker, a decentralized version of what traditional trading platforms do. The differences being the removal of the intermediary in favor of smart contracts and, as a result, the lowering of fees.

This is impressive in its own right, but not the story here.

In a crypto world, the value of a network depends (obviously) on how many people are using it in some form or fashion.

What this chart shows us is what most of us know…for the large number of chains out there, the primary purpose to hold the coin is speculation.

Only BTC and ETH have any “real” value.

That doesn’t mean it will stay that way forever.

As you can see from the numbers, we’re talking only a few million dollars of transaction fees per week…probably what Visa does in a few hours.

The good news is that this is a strong, strong, strong reminder of just how early we are.

I can understand the skeptic/cynic looking at these numbers and saying “after all this time, this is where we are? Proof that this is BS.”

I prefer the crypto-optimist’s mantra.

‘Your doubt is my alpha.’”

HODL.