Home CryptoCurrency News Ethereum - ERC20 Tokens Show Strength Against Ethereum’s Market Cap

Ethereum [ETH] – ERC20 Tokens Show Strength Against Ethereum’s Market Cap

The combined market capitalization for Ethereum ERC20 tokens has been gaining against Ethereum’s own market cap. Back in August, ERC-20 tokens had a market cap of ~$11 billion which was representative of about 40% of ETH’s at the then Ethereum market price.

According to a recent market analysis data released by Santiment, the ERC-20 market cap has risen to $12.8 billion against Ethereum’s $21 billion which represents about 61% dominance. This data shows that tokens have had bigger gains compared to Ethereum’s market action in the past few months.

Token ethereum erc20

Since its all-time high of $1375 back in January, Ethereum has been on a steep decline with the latest price update indicating that it is currently trading at ~$200. ETH has lost more than 80% of its value since the ATH.

Some experts have attributed this decline to the massive sell-off that has been seen by ICO projects that are converting their ICO gains to fund their projects. The selloff has eased in the recent months but some projects still hold significant ether and are expected to offload this amount in the coming months. Market data has shown that in the last 30 days as much as 10, 000 ETH has been sold off which is worth approximately $26 million.

One explanation for this ERC-20 gain is the massive value gain for some of the leading projects based on the Ethereum platform. For instance, the biggest ERC gainer is BNB (Binance Coin) which is the native token used on Binance, the leading cryptocurrency exchange by total daily trade volume. Another major gainer was MakerDAO whose DAI token was recently adopted as a viable decentralized banking option on the blockchain.

0x’s ZRX also witnessed huge price gains after the token became the first to be listed on the leading cryptocurrency exchange Coinbase earlier this month. BAT followed soon after with market participants anticipating that it will be listed next after ZRX by Coinbase. BAT, however, continued its rally longer after ZRX slowed down due to the launch of the latest iteration of the Brave Browser that was a hit in the crypto community.

Ethereum is currently straggling to maintain its second place position according to network value as its facing stiff competition from Ripple’s XRP. XRP surpassed ETH briefly late September due to some bullish news announced by the Ripple Foundation but ETH quickly regained its position. XRP now has a market cap of about $18 billion.

Alfonso Martínez
Cryptocurrency enthusiast since 2015, a lover of blockchain technology and everything around her. He joined the Crypto Economy team in 2018 as a content editor specializing in SEO. He is also responsible for the Social Networks of the platform.
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