CoinDesk is preparing for the invest: ethereum economy virtual event on Oct. 14 with a special series of newsletters focused on Ethereum’s past, present and future. Every day until the event the team behind Blockchain Bites will dive into an aspect of Ethereum that excites or confuses us. Today’s intro is written by CoinDesk research analyst Christine Kim.
This year, 2020, is proving to be wildly successful for Ethereum in terms of market performance and technological development.
Since January, ETH has so far tripled in value, beating out the gains made by the majority of the top crypto assets by trade volume. The only other crypto asset in the CoinDesk 20 that has outperformed ETH in the markets year-to-date is the LINK token, which is based on the Ethereum blockchain.
A growing number of stablecoins, which are crypto assets that track the value of one or more base assets such as the U.S. dollar, are beginning to be issued primarily on Ethereum. As of the end of September, 70% of stablecoins were issued from Ethereum. The collective demand for these assets has also grown significantly over the last nine months. Total stablecoin market capitalization has tripled year-to-date and now exceeds $20 billion.
But it’s not only Ethereum-based tokens that have seen a surge in demand this year. The underlying utility of new decentralized applications on the network have increased dramatically too. Trade volume on decentralized exchanges such as Uniswap and Curve Finance has soared from $4 billion to over $22 billion from January to September. As of Sept. 29, monthly aggregate DEX volume makes up for over 10% of total trade volume.
As if the growth in value and network activity on Ethereum wasn’t eventful enough, core developers building the next phase of Ethereum’s base layer technology expect to see the first phase of “Ethereum 2.0” go live before the end of the year. To this end,…