Ethereum (ETH) mining will soon no longer be necessary: The Ethereum blockchain will switch from PoW to PoS and will no longer need miners to verify the blocks. The picture shows an Ethereum coin on a circuit board.
The total value of all assets in the Ethereum ecosystem has exceeded $ 100 billion, according to data from blockchain database startup Messari
The company says that the market capitalization for ERC-20 coins on Ethereum – which consists mainly of stablecoins, DeFi coins, utility and exchange coins, and many others – started growing in 2017. Messari’s lead research analyst Ryan Watkins highlights the growth trend that reached a historic milestone in July:
I highlighted that the market capitalization of the ERC-20 tokens has for the first time ever reached parity with ETH, which further illustrates this development.
The trend has not stopped since then, and the market capitalization of the ERC-20 tokens is now well above the market capitalization of ETH.
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Watkins further notes that in the past few months the total value of all ERC-20 tokens has soared to a level not seen in over two years.
In the third quarter, the total value of all Ethereum assets exceeded $ 100 billion for the first time since 2018 – the height of the ICO boom.
The combined market capitalization of the ERC-20 tokens now significantly exceeds that of ETH.
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What about Ethereum’s health?
The appreciation of Ethereum has raised many questions about the future of the second largest cryptocurrency, Watkins says. One question in particular relates to the weak performance of Ethereum compared to the meteoric rise of DeFi.
Another concern for Watkins is the possibility that issuing certain tokens on Ethereum such as USDT (Tether) and other stablecoins may not be beneficial to ETH’s long-term health.
Bloomberg Intelligence’s commodities analyst Mike McGlone recently said he believes Ethereum will lose second place in terms of market cap to USDT.
The rapid rise in stablecoins‘ market capitalization suggests that central bank digital currencies (CBDCs) are a matter of time in our view. It may take something significant to stop the rampant adoption of Tether, the top stablecoin, which, based on the regression trend since early 2019, will match Ethereum’s capitalization in just under a year.