Ethereum About to Be Flipped by ERC20 Tokens on Its Own Blockchain

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Thu, 05/28/2020 - 18:43
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Alex Dovbnya
ERC20 tokens are approaching 50 percent of the total value stored on the Ethereum blockchain
Ethereum About to Be Flipped by ERC20 Tokens on Its Own Blockchain
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According to a tweet posted by Messari’s researcher Ryan Watkins, the share of ERC20 tokens is approaching 50 percent of the total value stored on the Ethereum blockchain.   

Watkins claims that this underscores ‘a complete transformation’ of the second-largest blockchain.  

The flippening no one expected 

ERC20 coins are now on the verge of flipping ETH, the token that underpins the network. This is not exactly the kind of flippening that the Ethereum community expected to see just a couple of years.  

In June 2017, when the ICO hype was close to reaching its peak, it seemed likely that the new kid on the block was able to topple Bitcoin. However, after the bubble due to the proliferation of bad projects and blatant scams, the ETH price tanked more than 85 percent from its January 2018 high.    

However, Watkins also notes that Ether now servers as the reserve asset of the mushrooming decentralized finance (DeFi) ecosystem, which has now become its primary use case.    

Blame Tether 

Back in January, stablecoins already flipped Ethereum in terms of the total transfer value. 

It was caused by the explosive growth of the ERC20 version of the Tether stablecoin. According to Etherscan, its market cap already has already surpassed $5.7 bln, which constitutes 63 percent of the coin’s total circulating supply that is now steadfastly approaching the $10 bln mark.

In mid-2019, the amount of Tether tokens issued on the Bitcoin-based Omni layer started to decline at a rapid pace, and the Ethereum version eventually took its crown in October 2019.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)