Ethereum [ETH] Network Grows Impressively Riding on Stablecoins and NFTs: Report

By Nivesh Rustgi
Published November 13, 2019 Updated November 13, 2019
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Ethereum [ETH] Network Grows Impressively Riding on Stablecoins and NFTs: Report

By Nivesh Rustgi
Published November 13, 2019 Updated November 13, 2019
  • Ethereum [ETH] has shown considerable growth in the past two years post the ICO bubble, according to a report from Coinmetrics
  • Much of the growth has been attributed to the rise of stablecoins (specially Tether) in the crypto market.

The growth of Bitcoin [BTC] this year has subdued the altcoins to the brink of extinction. Nonetheless, their value proposition was bound to be questioned after many rose to a billion-dollar market cap.

The SEC in the US and watchdogs in other nations curbed the ICO mania as well. Hence, there was little utility left for platforms like Ethereum.

However, a recent report by Coinmetrics projects a healthy growth of the system in the past two years. While Ethereum was way overvalued during the ICO bubble of 2018, the current market and network ratios are reaching a flipping point.

NVTV Ratio

growth of ethereum
Ethereum NVTV Ratio

Coinmetrics introduced a new ratio to analyze the network valuation – the Network Value to Token Value (NVTV) ratio. It essentially measures the ratio of total market cap deployed on Ethereum vs. the Mcap of ETH. Hence, a lower ratio suggests network growth; another optimistic view would be an unvalued price.

Growth of Fungible and Non-fungible Tokens

Not only the network value but also the transactions made on the network have also increased. The token transactions or ERC20 and ERC721 tokens are starting to lead the ETH transactions. The flipping of these metrics projects the positive growth of the network versus speculation.

eth transactions token non token
Token (ERC20 and ERC721) Vs. Non-Token (ETH transfers) Transactions

Moreover, the majority of the increase attributes to the rise of stablecoins over the past two years. According to another report from Coinshares, stablecoins market cap has grown 2.5 times since last November itself. Despite the allegations against Tether, it has maintained its share of stablecoins Mcap at 80%.

explosion of stablecoins
Growth of Stablecoins Over Last Year (Source: Coinshares)

The rise of USDT-ERC 20 support from most exchanges and wallets has been instrumental to its rise.

The ERC-721 tokens transactions also grew, much of which can be attributed to the online game Godsunchained.

The price of Ether [ETH] at 3: 45 hours UTC on 13th November 2019 is $185.9. The price is further questioned due to project risks and uncertainty around Ethereim 2.0 launch.

Do you think that Ethereum is undervalued, overvalued, or precisely valued? Please share your views with us. 


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh Rustgi
1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)

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