The total market cap for all ERC20 tokens running on Ethereum has topped $33 billion. The ETH market cap is around $26.8 billion.
Ethereum market cap has been surpassed by the combined value of the decentralized apps (dApps) tokens built on the network. The Ethereum-based tokens used in decentralized finance (DeFi) have recently grown in popularity dominating the smart contract platform at a combined value of $33 billion.
What analysts are wondering is if (DeFi) signifies big things on the horizon for the network? Some believe it nudges the platform’s market towards maturity. This is especially so considering that other tokens issued by the network such as ERC721 were not factored into the data from Etherscan, the Ethereum network’s explorer.
Year of Decentralized Finance
DeFi demand is massive and doesn’t look as if it’ll lose steam any time soon. A valid argument is the DeFi may not be helping the market price of ETH, however, tokens developed on the network’s platform are having a fantastic year.
ERC20 tokens have a combined market cap of $33 billion according to a report by a study group led by Camila Russo of The Defiant.
The data are from EtherScan, the most popular block explorer on Ethereum. At $33 billion, this exceeds the capitalization of the Ethereum in total market cap. Today, the native token of the ETH blockchain is worth $27 billion.
Combined Market Cap of ERC20 Tokens
This means that the total value of the decentralized apps built around Ethereum now surpasses the value of the native token ETH on which the blockchain’s ecosystem is run.
The Gap is a lot even wider when those built on ERC721 are factored it. Some of these are quite popular even though they’re not DeFi related. The CryptoKitties app for instance was launched with aplomb in 2017 gaining massive traction that clogged the Ethereum network.
Among the wide array of applications that wholly run on Ethereum, the ones closely related to decentralized finance (DeFi) are the most valuable. As seen in an earlier report, DeFi is experiencing rapid growth that is surprisingly faster than Bitcoin and the altcoins.
Proving a decentralized global supercomputer, Ethereum is gradually evolving a network that cannot be assessed based on the market cap of its token. Obviously, we are witnessing a network that hosts dApps and DeFi valued far more than the market cap.
DeFi popularity is no doubt the reason for the boost that has elicited more interest in building on Ethereum. It has even shown more popularity than Bitcoin.
This could be the beginning of the great dApp and DeFi adoption or just another bubble like the 2017 ICO craze.
Chuks is a blockchain enthusiast and finance researcher that has covered the crypto sphere for several years. He believes that the evolving technology would change how we do business.
