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The market capitalization of ERC-20 tokens exceeds that of Ethereum

September 18, 2020

The latest findings from Santiment, published in the bi-weekly newsletter of Cointelegraph Consultingsuggest that Ethereum be temporarily “professionalizing”.

Since the market crash of September 2nd The combined market capitalization of all ERC-20 assets exceeded the market capitalization of Ethereumand the spread between the two continues to grow in favor of ERC-20 assets. This change indicates that The price of the Ethereum has corrected more than the ERC-20 ecosystem and had trouble recovering immediately afterwards.

It is perhaps not surprising that the DeFi currencies in particular rose much faster than the ETH. According to Santiment’s DeFi watch list, lThe collective market capitalization of DeFi-related assets rose 15.6% in the last week alone. In comparison, Ethereum’s market capitalization increased + 7.7% over the same period.

The market capitalization of ERC-20 tokens exceeds that of Ethereum
The market capitalization of ERC-20 tokens exceeds that of Ethereum

However, Ethereum’s scalability issues may halt further progress. Ethereum’s average daily fees are $ 5.24. In early August, Ethereum’s average daily fees for 2020 were $ 0.38. The number of addresses sending or receiving Ethereum every day fell from 505,440 on August 5th to 312,860 on September 14th, a decrease of -38.1%.

Further appreciation of the Ethereum price is also difficult, as Ethereum’s 365-day MVRV ratio is currently 1.44 despite the recent correction. This shows that experienced ETH holders earn an average of 44% more on their initial investment.

This has been a historically stressful level for EthereumThe 365-day MVRV rate of the ETH reached a high of + 43% in May 2018 shortly before a decline and in February 2020 a high of + 48% before a correction. In the event that long-term holders lose confidence in the short-term price movements of ether, this has been a familiar zone where they have been able to make some profits in the past.

Read the complete issue of the newsletter here for a complete overview with graphics and images.

Cointelegraph’s Market Insights newsletter provides insight into the fundamentals of the digital assets market. Using market intelligence from Santiment, one of the leading analytics providers in the industry, the newsletter provides the latest data on social media sentiment, in-chain metrics and derivatives.

We also review top industry news, including mergers and acquisitions, changes in the regulatory landscape, and corporate blockchain integrations. Register now to be the first to receive this information. All previous editions of Market Insights are also available on Cointelegraph.com.

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