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- Ethereum [ETH] has shown considerable growth in the past two years post the ICO bubble, according to a report from Coinmetrics
- Much of the growth has been attributed to the rise of stablecoins (specially Tether) in the crypto market.
The growth of Bitcoin [BTC] this year has subdued the altcoins to the brink of extinction. Nonetheless, their value proposition was bound to be questioned after many rose to a billion-dollar market cap.
The SEC in the US and watchdogs in other nations curbed the ICO mania as well. Hence, there was little utility left for platforms like Ethereum.
However, a recent report by Coinmetrics projects a healthy growth of the system in the past two years. While Ethereum was way overvalued during the ICO bubble of 2018, the current market and network ratios are reaching a flipping point.
Coinmetrics introduced a new ratio to analyze the network valuation – the Network Value to Token Value (NVTV) ratio. It essentially measures the ratio of total market cap deployed on Ethereum vs. the Mcap of ETH. Hence, a lower ratio suggests network growth; another optimistic view would be an unvalued price.
Growth of Fungible and Non-fungible Tokens
Not only the network value but also the transactions made on the network have also increased. The token transactions or ERC20 and ERC721 tokens are starting to lead the ETH transactions. The flipping of these metrics projects the positive growth of the network versus speculation.
Moreover, the majority of the increase attributes to the rise of stablecoins over the past two years. According to another report from Coinshares, stablecoins market cap has grown 2.5 times since last November itself. Despite the allegations against Tether, it has maintained its share of stablecoins Mcap at 80%.
The rise of USDT-ERC 20 support from most exchanges and wallets has been instrumental to its rise.
The ERC-721 tokens transactions also grew, much of which can be attributed to the online game Godsunchained.
The price of Ether [ETH] at 3: 45 hours UTC on 13th November 2019 is $185.9. The price is further questioned due to project risks and uncertainty around Ethereim 2.0 launch.
Do you think that Ethereum is undervalued, overvalued, or precisely valued? Please share your views with us.
The post Ethereum [ETH] Network Grows Impressively Riding on Stablecoins and NFTs: Report appeared first on Coingape.