ERC20 Tokens Reach 60% Of Ethereum’s Market Cap | UseTheBitcoin
Ethereum market charts

ERC20 Tokens Reach 60% of Ethereum’s Market Cap

Avatar · in Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

ERC20 coins based on the Ethereum blockchain continue to grow. According to some reports, the combined market capitalization of all ERC20 tokens is $12.8 billion dollars. The data provided by Santiment shows an increase of 16% from the last August. At that time, the total ERC20 market capitalization was $11 billion dollars.

ERC20 Tokens Show Strength in a Bear Market

Ethereum (ETH) is one of the most popular blockchain platforms in the market. It allows projects and Initial Coin Offerings (ICOs) to launch their own tokens on its blockchain. Additionally, developers can also run smart contracts using Ethereum.

During the last years, the number of ERC20 tokens (those tokens based on Ethereum) has increased. In the last months, the tendency shows that the combined value of ERC20 tokens grew compared to Ethereum’s market capitalization.

Currently, Ethereum is being traded close to $200 dollars and has a market cap of $20 billion dollars. During the last two months, this virtual currency has lost 33% of its value. At the same time, other ERC20 tokens registered better performance than ETH. This is why the results show that ERC20 tokens reached 60% of ETH’s market cap.

There are several Initial Coin Offerings (ICOs) that are selling their ETH in order to finance their activities. In the last month, over 130,000 ETH was sold.

At the moment of writing, the most valuable ERC20 token is Binance Coin (BNB) which is used by the crypto exchange Binance. It has a market cap of $1.26 billion dollars. After Binance, the following most valuable ERC20 tokens are VeChain (VET), Maker (MKR) OmiseGO (OMG) and 0x (ZRX).

As per the report, it is not clear whether ETH is undervalued or tokens are overvalued. However, it is possible to see that Ethereum has also lost part of its value against BTC. Since the beginning of the year, ETH has lost more than 70% per cent of its value against BTC.

However, there is no clear ERC20 competitor that would eclipse Ethereum anytime soon. In the next months, developers will be working on different scaling solutions for the blockchain network. This could help ETH grow and register a higher valuation in the future.

 

Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

Build a winning crypto portfolio
Free report teaches how to structure your crypto portfolio, so you can maximize gains and minimize losses.