While ETH prices have remained in the proverbial dumps, the underlying Ethereum blockchain has seen a flurry of activity and development of recent months. The jury is still out on how these trends will affect the asset in the long run, but a top analyst says it would be unwise to ignore what is going on.
Ethereum is dramatically changing
Due to a Cambrian explosion in the demand for stablecoins based on Ethereum, ETH has rapidly been losing dominance on its home blockchain. That’s to say, ETH may not be the driving monetary force on its own chain in the coming weeks.
Ryan Watkins, a research analyst at crypto data firm Messari, shared:
“ERC-20 tokens are approaching 50% of the total value stored on Ethereum.Over the past two years there has been a complete transformation in how value is stored and transferred on the Ethereum blockchain.”
Due to the growth in stablecoins and other ERC tokens, the fees spent by users of Ethereum have increased dramatically over the past few months to near all-time highs. Simultaneously, the amount of value locked in decentralized finance has gone parabolic.
The trends identified are still nascent, but the Messari analyst said that they show how the fundamental nature of the Ethereum blockchain and ETH’s utility and investment case have changed dramatically. Read More