As Ethereum barrels towards major upgrades in the coming months, people have been leveling all kinds of concerns and complaints towards the ‘World Computer’ blockchain. However, despite the sentiment that no one is using Ethereum, data recorded from Coinmetrics says otherwise.
Ethereum will soon be moving to a Proof-of-Stake algorithm in order to ups its performance. Some high profile cryptocurrency commentators have called this a rouse and a scam and insisted that the project is also falling out of favor.
However, a new post from Coinmetrics, called “The Evolution of Ethereum Tokens,” describes how much has changed and grown on the network. It also illustrates how the network is being used as an asset insurance and programmable money network.
In dissecting how Ethereum has evolved in the last two years, Coimetrics begins by pointing out the difference between the network value as opposed to the token value. As a project, the second-highest cryptocurrency in terms of market cap is seeing its value chased down by the aggregate market caps of tokens launched on that platform.
This ratio, referred to as the “Network Value to Token Value” (NVTV) ratio, as proposed by Chris Burniske, is shrinking, which is a good thing for Ethereum.
2/ ERC20 value catching up to value of ETH. I think token value will far surpass ETH value in the future
This is good…Ethereum is a gravity well for digital assets
— Ryan Sean Adams – rsa.eth (@RyanSAdams) November 12, 2019
Another indicator that the network is starting to perform as intended is the recent transaction flippening that is happening more and more often. The report states that historically, aggregate token transaction count has been lower than Ethereum’s non-token transaction count.
However, in Q3 of this year, a flippening occurred where ERC-20 transaction counts…