Tokens built on the Ethereum blockchain are now worth more than Ethereum itself mainly due to the DeFi boom.
The combined market capitalization of ERC20 tokens reached $33 billion, while the market capitalization of Ethereum itself stands just over $26 billion. This was noted by analyst Kamila Russo from The Defiant.
Looks like total ERC20 tokens market cap has surpassed ETH market cap?— Camila Russo (@CamiRusso) July 13, 2020
ERC20 tokens on Etherscan https://t.co/0jhXPLJJbS
Market cap = $33B
ETH market cap= $27B
I think there was a @coinmetrics chart tracking this?https://t.co/B85MPEq5Tm
Thus, the total value of the economy built around Ethereum now exceeds ETH, the symbol of this economy-making blockchain. And that doesn't even take into account the cost of tokens based on other standards like ERC721 (like CryptoKitties or Gods Unchained). Allegedly, the gap is likely to be even wider.
Wouldn't be surprised. Just under 2 months ago the gap was only $4bn. DeFi mooned while ETH is only up ~20% since then. https://t.co/0EeltqI1Ho— Ryan Watkins (@RyanWatkins_) July 13, 2020
Of all the applications running on Ethereum, the most valuable are currently associated with decentralized finance. As Decrypt previously reported, DeFi tokens are currently growing in value much faster than bitcoin or any other cryptocurrency. DeFi projects hold more than $2 billion in digital assets frozen, with the most popular DeFi-platforms being Compound and MakerDAO.