Ethereum (ETH) and its Tokens are Among the Most Valuable Crypto Projects
Statisticssuggestthat almost 55 percent of the $1.1 trillion crypto market valuation is dominated by Ethereum, Ethereum-rooted, and ERC-20 tokens. As of writing on Jan 18, the ETH price is trading at around $1.2k, less than $200 from its all-time highs leading to a $137 billion market cap, less than a quarter of Bitcoin's. However, the inclusion of ERC-20 tokens—most of which are in DeFi, and valuation of projects created by former Ethereum co-founders likeCardanoand Polkadot, propels their dominance to over 50 percent.
Ethereum aims to be a world computer. It is a significant improvement of Bitcoin that proved a concept, enabling smart contracting. Due to smart contracting and Gas fees dominated in ETH, a virtuous cycle is created from a vibrant ecosystem where real products running on a censorship-resistant network are built. Cumulatively, most of the leading DeFi tokens like Maker and Aave, combined with those built by former Ethereum co-founders like Charles Hoskinson and Gavin Wood—who was behind Solidity, command a huge market share highlighting the power of smart contracting and a network effect that's now spread, touching most facets of crypto.
Impact on the ETH Price:
Bullish. Ethereum is benefiting from network effects buoyed by first-mover advantage. Traders are optimistic. Further price expansions above $1.4k could significantly lift the tide, narrowing the gap with BTC, a net positive for the ecosystem.
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