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BTC $43399.57 (1.60%)
ETH $3050.19 (4.17%)
USDT $1.00 (-0.0%)
BCH $517.57 (0.42%)
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LTC $153.06 (0.37%)
BNB $349.81 (-0.4%)
ADA $2.29 (-5.2%)
DOGE $0.20 (-0.2%)

ERC-20 Is Primed to Change The Global Financial Landscape

ERC-20 Is Primed to Change The Global Financial Landscape
  • Ethereum has its influence stretching all the way from Decentralized Finance (DeFi) to digital art.
  • Last year alone, the NFT-centric tokenization market has grown exponentially.
  • Ethereum blockchain currently powers several crypto offerings including stablecoins, wrapped tokens, NFTs, etc.
  • Interest in blockchain has continued to grow especially with mainstream players like JP Morgan, Amazon, and Goldman Sachs.

The Ethereum ERC-20 economy is set to change the global financial landscape. Ethereum has effectively laid the foundation of a multi-billion dollar economy which has its influence stretching all the way from Decentralized Finance (DeFi) to digital art.

Non-Fungible Tokens (NFTs) in particular, have been all the rage in recent months. With some digital collectibles selling online for ludicrous sums of money, it has gained a lot of interest from investors. Chris Torres, the man behind the internet sensation “Nyan cat, is an example. Recently, he sold his decade-old meme for a whopping $600,000.

In addition to that, Beeple, a digital artist, recently sold one of his artworks in the form of an NFT via auction house Christie’s for $69 million. This makes him one of the three most valued artists in the world today.

Last year alone,  the NFT-centric tokenization market has grown exponentially. The total value locked in this space is currently estimated to be worth $500 million.

Simply put, tokenization is seen to be the future of the global financial industry. This refers to all the processes by which a real-world asset can be converted into a digitally tradable entity. However, while securities are quite limited in their scope of operation and utilization, the concept of tokenization can be applied concerning a wide array of assets including stocks, bonds, indices, etc.

Blockchain knowledge has continued to grow recently, especially with an increasing number of mainstream players like JP Morgan, Amazon, and Goldman Sachs. The concept of tokenization has continued to garner more and more steam.

In fact, there are already many platforms that are offering interested users such services. One of them is Currency.com. It allows individuals to dabble in over 2000+ tokenized assets, including stocks, bonds, commodities, Forex, cryptocurrencies, and even ETFs.This is possible via traditional fiat-based means while offering clients a regulated infrastructure that employs high-end KYC/AML practices.

Moreover, this is where Ethereum enters the picture. Though many casual crypto enthusiasts and investors tend to think of Ether as digital money, the ecosystem underlying the altcoin is highly versatile and is better envisioned as a decentralized computing platform. Many believe that it can enable developers to create a wide array of novel applications, market protocols, DeFi tools, etc.

Ethereum blockchain currently powers a number of crypto offerings including stablecoins, wrapped tokens, NFTs, etc. The stablecoin market has grown so tremendously in recent years that the total market capitalization of this space has more than doubled since the start of 2021.

Without a doubt, the Ethereum ecosystem offers immense possibilities. Since it is allowing tokenization of all sorts of assets, its popularity has been growing at an increasingly rapid pace. This is best highlighted by the fact that throughout the last 90-days, Ether has outperformed BTC monetarily.

Furthermore, rising consumer interest in ETH is also exhibited by the fact that Reddit message boards dedicated to the currency have seen a massive influx of subscribers in recent weeks.

Just a few days ago, Meitu, a Hong-Kong-based tech firm bought a total of 16,000 ETH worth around US$30 million. This is the company’s second Ether purchase since the start of the year, with the last acquisition being worth US$22.1 million (approx 15,000 ETH).

However, as a result of Ether’s rising adoption, the currency is facing mounting congestion issues. It includes the issues on rising transaction fee-related problems. Thus, it remains to be seen whether Ether can rise to the occasion and sort out its existing issues to become the digital ecosystem.

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Britney is a market analyst who covers stories about the cryptocurrency world. She holds a Business Administration Degree in Finance and aims to let the readers understand crypto from a beginner perspective.