Cryptocurrency

The market of tokens in Ethereum is worth more than their own currency, ETH

The total market capitalization of all tokens ERC-20, Ethereum has surpassed that of the Ether (ETH), the criptomoneda main network, according to figures from etherscan.

The total market capitalization of the 970 tokens of standard ERC-20, Etherscan, is $ 33.000 million, while that of the ETH is about USD 27.000 million. This means that the tokens CKD-20 are 22% above the market capitalisation of the native currency of the network.

It seems unfair to compare the capitalization of 970 tokens with a single criptomoneda; but, this could be a way of analyzing the growth of the tokens. It should be noted that while more tokens exist in the network of Ethereum, there will be more companies and use cases for the ETH.

However, a number of tokens that are taken into account for such capitalization are in more of a blockchain or are no longer in Ethereum. Part of the value sheltered on some tokens could not be found in the network of Ethereum, so that the tokens could represent around 20% of the capitalization of Ethereum.

For example, of the USD 10,000 million to be taken as the market capitalization of the Tether, only $ 6,000 million are tokens in the network of Ethereum. In the network Tron the cap Tether is of USD 2,800 million, and in the network of Omni, network-related Bitcoin to USD 1,300 million. Tether also listed on networks such as EOS, Liquid, Algorand and SLP, so that it is reasonable to think that the value deposited in the criptomoneda is distributed in multiple networks.

Binance Coin (BNB) is based on the standard ERC-20 of Ethereum, but is located in the Binance Chain; some of the tokens may not be found in Ethereum. Aeternity and Tron have also launched their tokens initially in the network of Ethereum, but then migrated their tokens CKD-20 to your own networks and blockchains.

Tokens ERC-20, stablecoin and DeFi impacting Ethereum

The market capitalization is the result of multiplying the price of an asset by the number of units available in the market. It should be noted that the capitalization of a stablecoin will increase along with the number of units, while that of a token Set increases with the price. Taking the above into account, attention is called to the fact that there are approximately us $ 2.180 million blocked in platforms Finance Decentralized (DeFi).

The use of tokens CKD-20 in platforms DeFi could be one of the driving forces behind the increase in the value sheltered on the network of Ethereum. Tokens ERC-20-related DeFi as 0x (ZRX) Kyber Network (KNC) and Maker (MRK) have a number of active addresses that is on the rise, according to Coin Metrics. The ZRX has a market capitalization of USD 370 million, KNC has USD 330 million, and MRK has about USD 440 million.

Despite the use of the tokens ERC-20, ETH continues to be the main asset of the system Ethereum. Source: jpbuh/piqsels.com

Despite the importance that they are purchasing the tokens CKD-20 in Ethereum, the ETH remains the main reserve asset for the financial system of Ethereum. Although the DeFi and other platforms based on Ethereum have their own tokens, most you can use ETH to pay the transaction fees.

However, the accelerated growth of the ecosystem DeFi has been one of the factors that is calling more and more attention of the community of Ethereum. Breaking News reported that the growth of the DeFi creates the concern that it is a sign of the emergence of a new economic bubble in Ethereum.

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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