According to a cryptocurrency researcher, ERC20 tokens are approaching by dominating the Ethereum network and leaving ETH behind.
Researcher Ryan Watkins from crypto research company Messari stated that ERC20 tokens are approaching 50 percent of the total value stored in Ethereum, “ETH is getting closer to being passed in its own blockchain.” says.
Watkins explained whether this will happen will likely depend on the growth of ETH value against stable cryptocurrencies.
In addition, Watkins stated that in the last good year, Ethereum block chain has experienced a complete transformation in the way the value is stored and transferred, and the hiding assets are only one side of this change in the value in Ethereum. The researcher stated that the other party is the assets used in value transfers. Accordingly, in the last 12 months, 433 billion dollars of transactions have been made in Ethereum network, 279 billion dollars of which are stable cryptocurrencies, 133 billion dollars of Ether and 20 billion dollars of other ERC-20 tokens. On the other hand, according to the current trend, 2020 will be completed with 375 billion dollars stable crypto money, 133 billion dollars Ether and 27 dollars ERC-20 token transactions.
Watkins notes that ETH’s declining role as a means of payment may not be positive for ETH, at least in the long term. However, the researcher states that the use of ETH in decentralized finance (DeFi) helps to consolidate its position as the primary value store of the Ethereum platform. Underlining that ETH is a reserve asset for the Ethereum financial system (DeFi), Watkins suggested that the increased use of non-ETH assets in Ethereum is positive in the foreseeable future, regardless of its long-term effects on ETH.
Ethereum has a big test right now. The biggest cryptocurrency after Bitcoin with its market value will be completely renewed with Ethereum 2.0. It is stated that with the launch of Ethereum 2.0 in the coming months, Ethereum’s processing capacity per second will reach from 12-15 to 2000s. The success of this transition will undoubtedly bring a lot to Ethereum and possibly ETH. Failure can also cost you a lot.