Ethereum is a hot and controversial subject in the field of cryptography.On the one hand, the Smart Contract platform continues to be the undisputed number 2 of all market capitalization crypto-currencies.On the other hand, there has been a massive loss of stock price over the past two years, when ETH has suffered more from the extinction of many ICO projects than its own.Big Bitcoin brother.In addition, there are some technical barriers, such as scalability and the conversion of the consensus mechanism into evidence of participation, which still have to be considered fully resolved.However, the new Coin Metrics statistics also show that Ethereum is fundamentally better than ever on some points.The only question is: when does this also reflect in the Ethereum course and when does the price fall? “The evolution of the Ethereum symbol”
Coin Metrics is a cryptographic service provider that analyzes the decentralized economy and the cryptographic asset market.
In doing so, the company provides data and the results of its analyzes, which should lead to a better understanding of the value and use of distributed networks and their applications.
Part of the work of Coin Metrics consists of the publication of a series of reports entitled “State of the Network”, in which various pieces are examined under different aspects.In issue 25 of the report titled “The Evolution of Ethereum Tokens”, ETH designers take a closer look at the development of the network, often referred to as the decentralized global computer.
In short, the report notes the very positive evolution of some fundamental values of ETH.It also illustrates how the network is used as a programmable money network.
All signs on the green for a course rocket
We summarize below some remarkable results of the report, which show the positive development that Ethereum has achieved despite the massive fall in prices over the last two years and that could pave the way for a race rocket.
Ethereum being designed as a platform for distributed applications, as evidenced by the latest hype DeFi, it is worth distinguishing the value of the network (Ethereum market capitalization) from the value of the chips created on the platform.This relationship is called Coin Metrics “network value in token value” (= NVTV, in German “network value in token value”).
As shown in the chart below, the ETH market capitalization and aggregate value of a selection of the largest ERC-20 chips converged, which, according to Coin Metrics, constitutes a positive interpretation for the network.
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Start now! Transaction numbers turn around
Another statistic should be noted.In the Ethereum network, a distinction can be made between different types of transactions.There are those who use ERC-20 or ERC-721 chips, ie coins created on the ETH platform, and those not in this category.
For the first time in Q3 2019, ERC-20 and ERC-721 token transactions exceeded the remaining transactions on the network.According to Coin Metrics, this interpretation is also positive.
When does the course pull through the ceiling?
The Coin Metrics report provides some key figures that are just as positive to interpret by the network, but are beyond the scope of this article.With such a wealth of strong core values, everyone is wondering when the price will finally come and go.
Of course, no one can say that exactly.Assuming that the price of an asset approximates the real value in the long run, the duration of the Ethereum price should end in the long run.This has not happened yet.As the price comparison with Bitcoin shows, the ETH is down more than 40% since the beginning of this year.
Nevertheless, a slight upward trend could be observed last week.
Crypto experts see upcoming updates as a bottleneck for that.If all goes well and the technical obstacles are overcome, it could serve as a powerful catalyst for the Ethereum course.Do you want to be on the market on time with Ethereum, Bitcoin and Co.?
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(Source: Shutterstock, Coin Metrics, Coin360) Related.
