Ethereum was the die center beats for various cryptographic stories in 2020. With its own developments ETH 2.0 keeping the active community, it will be ignorant to look away from the stable situation regarding its blockchain.
The dynamics created by stablecoins on the Ethereum network have benefited the second digital asset, but many have also taken into account the harmful effects in a long term perspective.
Ryan Watkins of Messari recently commented on the evolution of Ethereum's value over the past two years.
Source: Twitter
According to the research analyst, the ERC-20 tokens were close to 50% of the total value stored on Ethereum . In July 2016, it was 100%, but the increase in stablecoin emissions in the ecosystem is currently creating a radical change.
Such a scenario increasingly weakens the importance of Ether on its own blockchain. However, due to the growth of stable coins on the blockchain, the fact is undeniable that the blockchain is transferring more value than ever, and as previously stated, it is close to surpassing Bitcoin for the total amount of value transferred. Now the Ethereum blockchain is poised to settle more than $ 530 billion in 2020, as Watkins reported.
Source: Twitter
In addition, it is also important to consider that the stable parts have also boosted network usage Ethereum in 2020, which amounted to 94.87% at present.
However, the negative implications of such a high issue are within everyone's reach. Ether currently has a credible claim as money in the industry, but the stable coins challenge this prospect. Stablecoins have the potential, due to their reduced volatility, to become the store of value, the medium of exchange and the unit of account for cryptographic transactions and smart contracts that must store value.
If you weigh these arguments side by side, the plot seems thin for Ether on its own blockchain in the future.
. . . But it will not happen
Now, while the dominant growth of stablecoin on the blockchain is impressive, the Ethereum community is unlikely to turn its back on its native token. Space users clearly understand the importance of maintaining the position of the Ether hierarchy on the blockchain.
Watkins added:
“In addition, the use of ETH in DeFi contributes to consolidating its position as the main store of value for Ethereum . ETH is and will always be the most minimized asset of trust available on Ethereum , and it is for this reason that ETH is the reserve asset for the Ethereum financial system (DeFi).
Therefore, no matter how stablecoin grows, the future of Ether is secure on Ethereum , as improving the use of blockchain over the next few years may protect the timeliness of monetary information. 'Ether.
