In a recently conducted analysis, it was revealed that ERC-20 tokens, which were issued on the Blockchain of Ethereum, are decoupling from it. In simpler terms, this means the price is not mirroring ether price. Rather the tokens are building their own communities and platforms.
Ethereum (ETH) Price Today – ETH / USD
According to a popular data analytics platform called Santiment, there are ten ERC-20 tokens decoupling from Ethereum. Two of these tokens have been listed on Coinbase, popular san Francisco based crypto exchange.
In the report, three ERC-20 tokens that were decoupled from Ethereum include; 0x (ZRX), the Basic Attention Token (BAT), and Maker (MKR). The three digital currencies have stopped following the price of ETH and now make their own prices.
The report provided a chart showing the prices of all three cryptos and how far they have come since a few month ago. They were following the trendline of Ethereum, but have decoupled.
Analysis of the three coins
The BAT surged a month ago after Brave Browser launched the Chromium based version. This made it more than 22% faster than usual. It also moved up this week when it was listed on Coinbase Pro.
ZRX also surged when the same exchange announced that it would be listed on the platform last month. This digital currency is a protocol that enhances low friction peer-to-peer exchange of ERC20 tokens on the Ethereum Blockchain. Its whitepaper describes it as such and it forms the foundation of Paradex, the decentralized cryptocurrency exchange that’s been integreated into the trading platform of Coinbase.
MKR token is also doing well. It has decoupled due to the DAI stablecoin, its product. It is widely adopted and it is seemingly beginning to be used as the first stablecoin on decentralized exchanges. The digital currency is algorithmically dollar pegged. Its market cap has also increased in a few years.
Considering all these developments, Ethereum’s ERC-20 tokens have a total market cap of $12.8 billion. This is at least sixty percent of the total market cap of the mother cryptocurrency, Ethereum. They are no longer bound by Ethereum and are paving their bull run independently.
Even though the cryptocurrencies decoupled from ETH, the network is not getting left behind.
The analysis of the firm states:
“Logically this price movement should eventually find its way to ETH as well. A similar pattern happened in 2016-2017 when ETH launched the explosive bull run and BTC followed. But the market is irrational enough that we prefer to stay in the present moment. And at this moment… the price dynamics of some tokens are now decoupled.”
At the moment, Ethereum is nearly eighty percent against bitcoin, the first cryptocurrency. This could happen during the “Flippening” where ETH becomes the top crypto by market cap and it seems imminent.