As the five-year anniversary of Ethereum Blockchain closes by, the market cap of ERC-20 tokens have gone through the roof and is finally set to be at par with Ether. The spike by ERC-20 tokens market cap has presented a strong case for its continued bullish run.
Ryan Selkis, CEO of crypto analytics firm Messari, in a July 17 newsletter said that the past 2 months have been bullish for ERC-20 tokens with their market cap shooting up to roughly $25.6 billion, accumulating for 49% of the total assets on the Ethereum Blockchain i.e- $52.6 billion.
“Ether now only accounts for 51% of the value secured on the Ethereum blockchain, which is the smallest amount on a percentage basis than it’s accounted for in its history. The other 49% of the value stored on Ethereum now incentivizes economic activity beyond the maintenance and execution of the Ethereum blockchain”.
As per Selkis, the growth of these tokens have primarily been attributed to Crypto.com token (CRO) and DeFi token Chainlink (LINK). However, with a meteoric rise in the interest in stablecoins has also weakened the grip of Ethereum on the Blockchain ecosystem.
Chainlink’s token has surged over 370% in 2020, pummeling it to ninth-biggest cryptocurrency by market cap gaining almost 80% this month. CRO’s market cap has also seen a large spike, rising from $426 million in January to $2.6 billion today.
A report published on July 14, that the market cap of stablecoins has risen from $2.2 billion to $11 billion, while Bitcoin (BTC) saw a downward spiral decreasing by 12%, from $195 billion to $171 billion. Thus the buying power of stablecoins like Tether (USDT) has markedly increased in 2020.
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