A recent on-chain activity report from Coin98 Analytics reveals a surprising leader in daily user activity: the Tron (TRX) network. With 1.23 million daily active users, Tron has outperformed both Bitcoin and BNB Chain, securing the top position. This outcome may come as a shock to many, especially since Ethereum and Bitcoin are often perceived as the most widely used blockchains.
Many in the cryptocurrency space rarely use Tron for participating in projects or on-chain interactions. So, what explains its high activity levels? The key lies in its role as a major hub for USDT (Tether) transactions and transfers. Tron has become the preferred network for moving stablecoins, serving as a primary gateway for fund inflows and outflows. Given the widespread use of USDT in trading and settlements, this functionality drives substantial daily engagement.
Bitcoin, meanwhile, has seen a surge in transaction volume due to the popularity of Ordinals—a protocol enabling NFT-like inscriptions on the Bitcoin blockchain. More than 30 million inscriptions have been created, contributing over $50 million in gas fees to the Bitcoin ecosystem.
Since 2021, BNB Chain has become the network of choice for many regional and speculative projects, particularly in Asia. Its low gas fees, fast transaction speeds, and user-friendly features have made it attractive for a variety of applications, including some controversial ones. Today, a large number of regional projects are launched on BNB Chain, whereas Ethereum remains the top choice for international memecoins and major tokens such as SHIB and PEPE.
It’s worth noting that the most active network isn’t always the most advanced. High gas fees on certain blockchains, like Ethereum, can lead to significant transaction costs—especially during periods of high demand. This has created opportunities for other Layer 1 (L1) solutions to grow.
Solana, for example, leveraged its high throughput and low costs to become one of the fastest-growing L1 networks in the previous bull market. Its token price surged more than 200-fold, climbing from obscurity to over $200. However, Solana’s value declined dramatically following the collapse of FTX and several ecosystem projects, and its current market capitalization is less than one-tenth of its peak.
What Makes a Blockchain Network Healthy?
Developer Activity
Developer engagement is a strong indicator of blockchain health. Developers not only maintain and upgrade the core protocol but also build new applications and use cases on top of it. A vibrant developer community can signal potential for future innovation and value creation.
According to Electric Capital’s Developer Report, Ethereum continues to lead in total number of active developers. However, other networks are also showing impressive growth. Polkadot, Cosmos, and Solana each support unique programming languages and have attracted significant developer interest. Newer networks like Aptos and Sui have also gained attention for their rapid developer adoption soon after launch.
User Adoption
User adoption is another core metric often linked to network value. Metcalfe’s Law suggests that the value of a network can grow exponentially as its number of users increases.
That said, measuring real user activity in crypto can be challenging. The ease of creating new addresses makes it difficult to distinguish between unique users and duplicate or sybil accounts. Nevertheless, daily active addresses offer a useful approximation of adoption trends.
Data shows that Ethereum does not lead in terms of daily active users. Instead, more affordable networks like Tron, BNB Chain, and Polygon have higher user activity. Some blockchains, such as Polkadot and Cardano, have relatively high valuations despite lower user counts. This indicates that user numbers alone do not determine market value.
Liquidity and Capital Flow
When it comes to liquidity—measured by Total Value Locked (TVL), DEX trading volume, number of trading pairs, and more—Ethereum still dominates. Its share of TVL has remained relatively stable since mid-2022, even as competing L1 networks have risen.
Ethereum’s leadership is not absolute, but its liquidity advantage is clear. The market appears to place a high premium on capital efficiency and deep liquidity, which helps explain Ethereum’s sustained valuation despite higher fees and slower transaction speeds.
The Expanding Role of Layer 2 Solutions
The competition among L1 networks continues to intensify. New entrants like Aptos and Sui aim to challenge established players, though both currently suffer from low adoption and activity levels.
At the same time, Layer 2 (L2) scaling solutions are gaining momentum. Networks like Optimism (OP) and Arbitrum (ARB) have launched their mainnets and are seeing growing activity—all while offering significantly lower fees than Ethereum.
Optimism has become a foundational layer for several new chains, including Base and Zora. Arbitrum is focused on enhancing network performance and reducing costs further. Other projects, like zkSync and StarkNet, are advancing zero-knowledge proof technology, though progress has been gradual. Additional L2 networks such as Linea and Scroll are also emerging, each contributing to a more fragmented but innovative ecosystem.
It is becoming evident that the next major bull market may center on L2 scalability and user acquisition. Billions of dollars in capital are being deployed in this segment, with major players like MetaMask (ConsenSys), Coinbase, and Polygon making strategic investments.
L2 solutions benefit from being closely integrated with Ethereum—offering stronger security guarantees—while also delivering lower fees and faster transactions. However, there is still room for improvement in both speed and cost.
Frequently Asked Questions
What is Tron used for?
Tron is primarily used for high-speed USDT transfers and as a low-cost network for stablecoin transactions. It has become a popular choice for users moving funds between exchanges or making international transfers due to its low fees.
Why does Ethereum have higher fees than other networks?
Ethereum’s proof-of-work and proof-of-stake consensus mechanisms prioritize security and decentralization, which can lead to network congestion during peak times. This increases transaction fees as users compete to have their transactions processed faster.
Are Layer 2 solutions secure?
Most major L2 networks derive their security from Ethereum. They batch transactions off-chain before settling them on the mainnet, reducing cost while maintaining a high degree of safety. However, each L2 has its own trust assumptions and technical trade-offs.
Which network is best for developers?
Ethereum still has the largest developer community and the most tools available. However, newer networks like Solana, Aptos, and Sui are gaining traction with developers interested in high performance and novel programming models.
What is Total Value Locked (TVL)?
TVL represents the total amount of assets deposited in a blockchain’s decentralized applications (dApps), mainly in DeFi protocols. It is a key indicator of ecosystem growth and user trust.
Will Layer 2 networks replace Layer 1?
It is unlikely. L2 solutions are designed to extend the capabilities of L1 blockchains like Ethereum, not replace them. Both layers will continue to evolve and serve different needs within the crypto ecosystem.
For those interested in tracking real-time network activity and performance metrics, you can 👉 explore more on-chain data tools to stay informed.
Source: Adapted from publicly available data and industry reports.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice.