{"id":425574,"date":"2020-05-29T18:00:57","date_gmt":"2020-05-29T18:00:57","guid":{"rendered":"https:\/\/wncen.com\/?p=425574"},"modified":"2020-05-29T17:40:28","modified_gmt":"2020-05-29T17:40:28","slug":"erc20-tokens-50-value-ethereum","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/erc20-tokens-50-value-ethereum\/","title":{"rendered":"ERC-20 Tokens Now Make up Almost 50% of the Total Value Stored on Ethereum"},"content":{"rendered":"

Ethereum is getting closer to being flipped on its own blockchain, as other ERC-20 tokens now make up almost half of the total value stored on the network. However, the latest research from Messari Crypto suggests that while stablecoins have seen significant growth in the past few years, ETH still retains its privileged position on the Ethereum blockchain.<\/span><\/p>\n

Ether is Taking Up Less and Less Value on the Ethereum Blockchain<\/strong><\/h2>\n

Ethereum is getting dangerously close to being flipped on its own blockchain\u2014this is the takeaway from Messari Crypto\u2019s latest analysis into the state of the value locked on the world\u2019s second-largest blockchain.<\/span><\/p>\n

In a lengthy <\/span>think-piece<\/span><\/a>, Messari\u2019s head of research Ryan Watkins dove deep into the issue of ERC-20 tokens and stablecoins on the Ethereum blockchain. The data showed that, over the past two years, there has been a complete transformation of how value is both stored and transferred on the Ethereum blockchain.\u00a0<\/span><\/p>\n

Until mid-2016, ETH made up 100% of the value stored on the blockchain. Its dominance, however, began withering in 2018, and now makes up just over 50% of the total value stored on the blockchain.<\/span><\/p>\n

\"Graph
Graph showing the total value stored on the network. (Source: <\/span><\/i>Messari<\/span><\/i><\/a>)<\/span><\/i><\/figcaption><\/figure>\n

ERC-20 Dominance Doesn\u2019t Bode Well for ETH But Cements Its Place<\/strong><\/h2>\n

Watkins said that the growth of stablecoins in relation to the growth in value of ETH will be what decides whether or not ETH will remain the dominant force on the blockchain. The total market capitalization of ETH currently stands at $22.7 billion, while the market cap of all ERC-20 tokens, including stablecoins and exchange tokens, is $18.7 billion.<\/span><\/p>\n

\"Graph
Graph showing the market capitalization of Ethereum-based assets. (Source: <\/span><\/i>Messari<\/span><\/i><\/a>)<\/span><\/i><\/figcaption><\/figure>\n

Nonetheless, the transformation in value on ETH we\u2019ve been seeing in the past few years isn\u2019t just about stored assets\u2014it\u2019s also about the amount of value being <\/span>moved<\/span><\/i>. Watkins explained that Ethereum is on pace to settle more than $530 billion this year, with most of the growth being driven by the growth of stablecoins.<\/span><\/p>\n

\"Annual
Annual settlement value on Ethereum. (Source: <\/span><\/i>Messari<\/span><\/i><\/a>)<\/span><\/i><\/figcaption><\/figure>\n

While ETH\u2019s decreasing role as a medium of exchange might not be positive for Ethereum in the long-run, Watkins said that the community well understands the need to maintain ETH\u2019s privileged position on the blockchain.<\/span><\/p>\n

\u201cIn short, Ethereum is being used more than ever, and in just two years, it has evolved from a blank canvas to an agglomeration of novel forms of value and use cases,\u201d he <\/span>said<\/span><\/a>. \u201cThe question for investors is whether this development will eventually be rewarded or if the market will continue to shrug it off.\u201d<\/span><\/p>\n

Featured Image from Shutterstock<\/pre>\n","protected":false},"excerpt":{"rendered":"

Ethereum is getting closer to being flipped on its own blockchain, as other ERC-20 tokens now make up almost half of the total value stored on the network. However, the latest research from Messari Crypto suggests that while stablecoins have seen significant growth in the past few years, ETH still retains its privileged position on the Ethereum blockchain. Ether is Taking Up Less and Less Value on the Ethereum Blockchain Ethereum is getting dangerously close to being flipped on its own blockchain\u2014this is the takeaway from Messari Crypto\u2019s latest analysis into the state of the value locked on the world\u2019s second-largest blockchain. In a lengthy think-piece, Messari\u2019s head of research Ryan Watkins dove deep into the issue of ERC-20 tokens and stablecoins on the Ethereum blockchain. The data showed that, over the past two years, there has been a complete transformation of how value is both stored and transferred on the Ethereum blockchain.\u00a0 Until mid-2016, ETH made up 100% of the value stored on the blockchain. Its dominance, however, began withering in 2018, and now makes up just over 50% of the total value stored on the blockchain. ERC-20 Dominance Doesn\u2019t Bode Well for ETH But Cements Its Place Watkins said that the growth of stablecoins in relation to the growth in value of ETH will be what decides whether or not ETH will remain the dominant force on the blockchain. The total market capitalization of ETH currently stands at $22.7 billion, while the market cap of all ERC-20 tokens, including stablecoins and exchange tokens, is $18.7 billion. Nonetheless, the transformation in value on ETH we\u2019ve been seeing in the past few years isn\u2019t just about stored assets\u2014it\u2019s also about the amount of value being moved. Watkins explained that Ethereum is on pace to settle more than $530 billion this year, with most of the growth being driven by the growth of stablecoins. While ETH\u2019s decreasing role as a medium of exchange might not be positive for Ethereum in the long-run, Watkins said that the community well understands the need to maintain ETH\u2019s privileged position on the blockchain. \u201cIn short, Ethereum is being used more than ever, and in just two years, it has evolved from a blank canvas to an agglomeration of novel forms of value and use cases,\u201d he said. \u201cThe question for investors is whether this development will eventually be rewarded or if the market will continue to shrug it off.\u201d Featured Image from Shutterstock<\/p>\n","protected":false},"author":531,"featured_media":413176,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,13625],"tags":[1020,10523,1946,8686],"class_list":["post-425574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-ethereum","tag-blockchain","tag-erc20","tag-ethereum","tag-ethusd"],"acf":[],"yoast_head":"\nERC-20 Tokens Now Make up Almost 50% of the Total Value Stored on Ethereum<\/title>\n<meta name=\"description\" content=\"Ethereum is getting closer to being flipped on its own blockchain, as other ERC-20 tokens now make up almost half of the total value stored on the\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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