Token Spotlight: rsERG

9/11/2024

This week’s Token Spotlight is on rsERG, the bridged version of the utility token of the Ergo blockchain; ERG. This was one of the first assets that were bridged to Cardano via the Rosen Bridge, allowing those in the Cardano ecosystem to have exposure to ERG. This article will delve into rsERG, its distribution, volume, and more.

rsERG Distribution & Tokenomics

rsERG has a current supply of 1.64 million. At 2.1 ADA per token, this gives rsERG a market cap of $1.16 million USD, placing it at #75 in the Top 100 tokens on Cardano. It’s important to note that rsERG enters circulation as assets are bridged from the Ergo blockchain, and are removed from circulation if they bridge back to Ergo.

There are currently 1,751 wallets holding rsERG, an increase of 6.64% in the last 30 days. The token has a Median Holder Balance of 0.12 rsERG equivalent to 0.26 ADA, and an Average Holder Age of 132.08 days, highlighting a community of holders that wish to have exposure to ERG on the Cardano blockchain.

1,536 of the wallets holding rsERG have a position worth 1,000 ADA or less, as this is a vast majority of holders, it does appear to have a good distribution with not many wallets holding large amounts of rsERG.

Liquidity

rsERG has 757.94K ADA in pooled liquidity across six decentralized exchanges on the Cardano blockchain. The Splash DEX holds a large portion of this, equivalent to 74.65% of the token’s total liquidity, with Minswap V2 being the second most liquid DEX with 14.58%, and VyFinance coming in third with 4.71% of rsERG’s liquidity.

Volume

rsERG has a Lifetime Trading Volume of 16.26 million ADA that took place across 11,560 trades and is equivalent to 5.86 million rsERG. 8.09 million of this was buy volume while 8.16 million was sell volume.

The shrimp wallet size (0–5K ADA) leads this token in trading volume, followed closely in second by the orca (250K-1M ADA) wallet size. The whale wallet size has the least amount of trading volume for this token.

Utility

We’ll now delve into the utility that rsERG offers its holders.

Token Bridging: Holders of rsERG can bridge their tokens between Ergo and Cardano, allowing them to either arbitrage the price or utilize the token’s utility on either chain through various decentralized finance applications. For example, on Ergo the tokens can be used to purchase NFTs on Skyharbor, or to take a loan on Duckpools. On Cardano, the tokens can be deposited on Liqwid Finance to earn passive income.

Additional utilities: As the Cardano and Ergo ecosystems become more interconnected, more utilities for this token may emerge. One example so far is Zengate Global holding a special sale for their PALM token for rsERG holders on Cardano.

Conclusion

In conclusion, rsERG is a key bridge asset linking the Ergo and Cardano ecosystems, showcasing the growing potential for cross-chain collaboration. With a strong and expanding community, the token is well-positioned for further integration as the relationship between these ecosystems continues to evolve. It will be interesting to see Ergo and Cardano ecosystems become more connected and grow together in the future.

You can find out more about Ergo at the following link: https://ergoplatform.org/en/

More information on the Rosen Bridge, used to move assets between Cardano & Ergo, can be found here: https://rosen.tech/

This article is strictly for informational purposes and does not constitute a promotion or financial advice. Our aim is solely to provide users with the latest news and updates within the Cardano ecosystem. Token info was accurate at the time of writing.

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