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Total Market Cap for ERC20 Tokens Surpasses That of Ethereum’s – Is This the DeFi Effect?

Ethereum has been all the hype recently and for good reason, considering that the blockchain network is closer to its Ethereum 2.0 upgrade than it has ever been before. The crypto community has been buying and holding Ethereum (ETH) in anticipation of possibly becoming one of the validators on the new network and reaping the corresponding block rewards made available. The total market capitalization of Ethereum is now at $27 billion, but what is more surprising is the total market capitalization of all ERC20 tokens, which has greatly surpassed that of Ethereum’s at $33 billion.

Camilo Russo, editor at crypto media publication The Defiant, compiled a full list of 970 ERC20 tokens, which includes major altcoins such as Binance Coin (BNB), Chainlink (LINK), Huobi Token (HT), Compound token (COMP) and stablecoins like Tether (USDT) and USD Coin (USDC).

Blockchain and crypto analytics firm CoinMetrics similarly charted the market caps of Ethereum against the top 5 ERC20 tokens in the market and found that the latter crossed Ethereum’s total market capitalization on July 3.

The strong growth of ERC20 tokens can be attributed partially to the popularity surge in DeFi tokens in recent months. Despite being very new on the market having launched only a month ago, the COMP token has taken the crypto world by storm with its market cap quickly approaching the $500 million mark. Indeed, the DeFi sector is poised to see even greater gains especially with Compound’s recent progress. Over the weekend, the lending platform hit a total of $1 billion in borrowed assets with total deposits amounting to almost $1.7 billion.

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