After the ICO bubble burst, how is the Ethereine network developing?

This article comes from CoinGape, the original author: Nivesh Rustgi

Odaily Planet Daily Translator: Yu Shunqi

Summary:

  • According to a Coinmetrics report, Ethereum has shown considerable growth in the past two years after the ICO bubble.
  • Much of the growth was attributable to the rise of stable currencies (especially Tether) in the encryption market.

The growth of Bitcoin this year has already suppressed the altcoin to the brink of extinction. Still, after the market value of many currencies rose to $1 billion, their value proposition would certainly be questioned.

The US Securities and Exchange Commission (SEC) and regulators in other countries have also suppressed ICO fanaticism. Therefore, a platform like Ethereum seems to have no use.

However, Coinmetrics' latest report says the system has grown healthily over the past two years. Although Ethereum was severely overestimated during the 2018 ICO bubble, the current NVTV ratio is reaching a turning point.

NVTV ratio

Image source: Coinmetrics, NVTV ratio

Coinmetrics introduced a new ratio to analyze network value – the NVTV ratio. A lower NVTV ratio indicates a growth in the network; another optimistic view is that the price is not fixed.

  • Odaily Planet Daily Note: NVTV stands for Network Value to Token Value, which refers to the ratio between network value and token value. The network value is the total market value of the smart contract base token. The token value refers to the platform. The total value of all assets issued. The NVTV ratio of Ethereum has been steadily declining. On April 1, 2019, the NVTV ratio of Ethereum reached an all-time low of 1.57. As of November 10, this ratio was 1.90.

Alternative and irreplaceable token growth

Not only the value of the network, but also the transactions on the network have increased. Token transactions (or ERC20 and ERC721 tokens) begin to lead ETH transactions. Changes in these indicators indicate a positive growth in the network relative to speculative activity.

Image source: Coinmetrics, token (ERC20 and ERC721) transaction vs. non-monetary (ETH transfer) transaction comparison chart

In addition, most of the growth was attributed to the growth of stable currencies over the past two years. According to a report by Coinshares, the total market value of stable currencies has increased to 2.5 times since November last year. Although Tether was accused, its market share of stable currency remained at 80%.

Image source: Coinshares, the growth of stable currency last year

More and more exchanges and wallets support USDT-ERC 20, which has contributed to its rise.

ERC-721 token transactions have also increased, most of which can be attributed to the online game Godsunchained.

On November 13, at the time of writing, the ETH price was approximately $185.9. Due to project risks and the uncertainty of the release of Ethereim 2.0, its price is further questioned.

Please indicate the source if you reprint.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

FTX Crypto Exchange: The Bidding Bonanza!

Some of the available options include selling the exchange, which previously had 9 million users but went bankrupt.

Policy

Crypto Exchange FTX to Sell Trust Assets: Debtors Making a Desperate Cash Grab!

The debtors have suggested forming a pricing committee that includes representation from all stakeholders in addition...

Opinion

One year after the FTX crash, have the once badly affected market makers in the crypto world recovered?

Alameda Research is the core trading company of Sam Bankman-Fried's failed crypto empire, and after the company's col...

Blockchain

Market Weekly | The market is in a consolidation period, and the exchange has picked up

Weekly summary Last week, the average daily market value of global digital currency assets was 326.973 billion US dol...

Blockchain

IEO re-burns the ring of rich dreams, how long can the dozens of income myths go?

There is no doubt that IEO is the hottest word in the currency. Since January 3 this year, the company announced the ...

Blockchain

Three major domestic virtual currency exchanges focus on compliance business and actively engage with local governments and state-owned enterprises

China Times (www.chinatimes.net.cn) reporter Ran Xuedong trainee reporter An Lingfei Beijing reports The currency cir...