Ethereum tokens are now more valuable than ETH itself

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DeFi is done for a while. And even if it doesn’t do wonders for the price of Ethereum (ETH) itself, the tokens built at the top of the network are having a great year.The total market capitalization of all ERC20 tokens running on Ethereum has exceeded $ 33 billion, according to data compiled and shared by The Defiantown Camila Russo. The source of the figures comes from EtherScan, Ethereum’s most popular block explorer.

And at $ 33 billion, the estimate exceeds the total market capitalization of ETH, the native token of the Ethereum blockchain, which today is worth around $ 27 billion.

In summary, the total value of the built economy around Ethereum now exceeds that of ETH, the token that supports the blockchain. And that doesn’t even take into account the value of unique tokens based on the ERC721 standard (like those issued by CryptoKitties or Unleashed Gods), which alone displace millions of dollars. The gap is therefore probably even greater.

Of all the applications that run on Ethereum, the the most important are currently linked to decentralized finance. As Decipher Previously reported, DeFi tokens are currently growing much faster than Bitcoin, or any other cryptocurrency on the market. Right now it looks like it’s DeFi, token exchange, and high risk apps that attract the most attention from investors.

Blockchain > crypto?

Depending on how you see it, it could be a sign of market maturity. Ethereum could prove its value as a decentralized global supercomputer on which various applications are built.

In other words, the value of Ethereum as a technology probably cannot be simply measured in terms of the market capitalization of ETH. ETH, after all, is only part of a complex ecosystem that continues to evolve. (This may even be a sign that Ethereum co-founder Joe Lubin could still earn his bet against maximalist Bitcoin Jimmy Song, if mass adoption of dapps really becomes a thing.)

And with Ethereum 2.0 just around the corner (according to some ETH developers, at least), the big DeFi boom of 2020 could be a sign of things to come.

Again, the DeFi hype could also dissipate as well as the ICO craze for 2017. Ultimately, market players will decide.

Warning

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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