With less than two weeks to go before the fifth anniversary of the Ethereum blockchain, the ERC-20 token’s market capitalisation performance has shot up to almost parity with that of the Ether.
Ryan Selkis, CEO of cryptanalysis company Messari, said in a July 17 newsletter that in the last two months, the market capitalization of all ERC-20 tokens has shot up to about $25.6 billion, about 49% of the total assets of the Ethereum blockchain (ETH), $52.6 billion.
„Ether now represents only 51% of the insured value in the Ethereum blockchain, which is the smallest percentage amount ever counted. The other 49% of the value stored in Ethereum now encourages economic activity beyond the maintenance and execution of the Ethereum blockchain.
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The rise of DeFi and stablecoins
According to Selkis, the growth of these tokens is mainly due to the Crypto.com token (CRO) and the DeFi Chainlink token (LINK), but the increased interest in stablecoins has also weakened Ethereum’s hold on its own block chain.
The Chainlink token has increased by more than 370% in 2020, generating profits of nearly 80% this month to become the ninth largest cryptomone currency by market capitalization. CRO’s market capitalization has also improved, from USD 426 million in January to USD 2.6 billion today.
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Cointelegraph reported on 14th July that the market capitalisation of stablecoins has increased from US$2.2 billion to US$11 billion whilst Immediate Edge has decreased by 12% from US$195 billion to US$171 billion. Therefore, the purchasing power of stablecoins such as Tether (USDT) has increased significantly in 2020.