ERC-20 tokens reach 50% of the total value of the Ethereum network
According to a new Messari Crypto study, ERC-20 tokens account for almost half of all the value of the Ethereum network.
According to a new report from cryptocurrency analysis company Messari, the ERC-20 standard Ethereum tokens are already responsible for almost 50% of the network’s total value.
Ethereum was launched in July 2015 and works as a decentralized platform for smart contracts and decentralized applications.
The network has its own cryptocurrency called Ether ( ETH ), which serves to pay for the “gas” for transactions.
The platform is the main option for developers to create decentralized applications and the number of new projects on the Ethereum network continues to grow.
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The Ethereum network has a token standard called ERC-20 . This standard allows projects to launch their own tokens or cryptocurrencies easily and quickly.
The latest Messari Crypto research suggests that ETH is losing space for these new tokens, which already account for almost 50% of the total value of the Ethereum network.
The data showed that in the past two years there has been a complete transformation in the way value is stored and transferred on the Ethereum Blockchain.
In mid-2016, ETH represented 100% of the value stored on the Ethereum network.
However, with the constant launch of new projects on the network, its domain began to fall in 2018 and now represents just over 50% of the total value stored on the Blockchain.
The study suggests that the growth of stablecoins relative to the growth of ETH’s value will be what decides whether ETH will remain the dominant force on the Blockchain.
The Ethereum network is also used for stablecoins. This type of asset works like an ERC-20 token and has its value tied to some national currency such as the US dollar.
In recent months, the amount of stablecoins on the Ethereum network has exploded and this is one of the reasons for the growth of value stored as ERC-20 on the network.
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The study also analyzed movements in the network and explains that Ethereum is on track to process more than $ 530 billion this year alone, and most of the growth is driven by the growth of stablecoins.