Ethereum’s economic metrics are strengthening as the transfer value and market capitalization of ERC-20 continue to gain momentum.
Research by the on-chain analysis platform Santiment has shown that the market capitalization for all ERC-20-based tokens has flipped that of Ethereum itself. It added that it is currently the highest market cap differential of all time of ERC-20 coins versus Ethereum.
The total market cap for all current ERC-20 assets is $ 46.7 billion, while that for Ethereum is currently just over $ 41 billion at the time of writing.
This year there were some similar, short “flippenings”, the longest of which took place in July. Ethereum’s price hike in August raised its market cap to over $ 50 billion, but the subsequent correction has allowed the ERC-20 tokens to outperform it again.
The ERC-20 market cap has “#flipped” the market cap of $ ETH since the #crypto dump on Black Thursday. After the first crossing in mid-March, it reappeared on September 3rd. This is currently the largest market cap difference of ERC-20 coins over $ ETH ever! https://t.co/9tAtfPe06d pic.twitter.com/vTH7mD6JWm
– Santiment (@santimentfeed) September 9, 2020
Tether makes up a large chunk of ERC-20 capitalization at around $ 8.9 billion, or 60% of the total USDT supply currently on the Ethereum network, according to the Tether Transparency Report.
The surge in DeFi income farming popularity over the past few months has resulted in a number of new ERC-20 tokens appearing, which has contributed to this total capitalization increase.
DeFi and USDT have fueled Ethereum’s economic activity so much that the seven-day average adjusted transfer value is higher than Bitcoin’s for the first time since early 2018.
Analytics from CoinMetrics reported that on September 5, that number hit $ 3.08 billion carried over to Ethereum, compared to $ 3.01 billion when using Bitcoin.
The ETH’s average adjusted 7-day transfer value turned the BTC around.
On September 5, the average adjusted 7-day transfer value for ETH reached $ 3.08 billion, compared to $ 3.01 billion for BTC.
Read more in this week’s SOTN: https: //t.co/6JXE5YEN8p pic.twitter.com/N3wcNUeunH
– CoinMetrics.io (@coinmetrics) September 9, 2020
The introduction of passive earning opportunities for Ethereum holders, such as Yearn Finance’s yETH depot, has also contributed to economic activity on the network. There is currently 220,000 ETH worth around $ 80 million at current prices that are locked in the YETH vault and earn around 28% according to Yearn statistics. SushiSwap has been another of the most popular DeFi protocols lately, driving up both the transmission value of Ethereum and network fees.