LAGOS (CoinChapter.com) — Ethereum (ETH) is one of the most valuable cryptocurrencies. This is quite evident as it is the second-largest cryptocurrency by market capitalization and has continued to experience an increased adoption rate and popularity.
However, no matter how much Ethereum you buy, you can never own enough.
Below are three reasons why you don’t have enough ETH and can never have enough ETH
There have been speculations that stablecoins are the real crypto killer apps — something that makes technology a must-have addition to daily life.
Nic Carter, Co-Founder of CoinMetrics.io, during a panel discussion at Blockwork’s permissionless event, said :
“Stablecoins are crypto’s killer apps so afar, no question. They’ve been responsible for great transactional autonomy.”
Throughout the cryptocurrency industry’s young history, Bitcoin and Ethereum were the cryptocurrencies in the spotlight. These cryptos took the world by storm and went from being relatively unknown to widely accepted as an alternative to fiat currencies.
However, the evolution of stablecoins saw these cryptos experience a downtrend.
Before the evolution of stablecoins, cryptocurrency volatility was a major concern. The evolution of dollar-pegged tokens saw this issue eliminated, even retaining the utility and speed that Ethereum and Bitcoin provides.
In recent times, investors have realized that Ethereum isn’t necessary to digitally store value or more capital as these purposes are often far better served by stablecoins.
Today, the total stable coin market cap is $180 billion, of which nearly 75% are home to Ethereum.
2. Defi and Liquidity Supply
Meanwhile, Ethereum is practically synonymous with Defi because it powers many cryptocurrencies in the Decentralized Finance Sector. Anyone with an Ethereum and internet connection can conduct their financials in a trustless manner.
With the trends surrounding the supply of Ethereum, we have to ask how much of the $ETH supply is circulating?
There are currently $73.15B TVL in Defi, exchange balances reached three years low, and more than 25% of ETH are locked in smart contracts.
So, if you sum the amount locked in liquidity pools, Defi, and those locked in the smart contract, the answer to the amount of $ETH circulating is substantial compared to the significant amount locked.
3. Ethereum User Growth
ETH has experienced and is still experiencing mass adoption from the crypto community. The number of unique addresses on Ethereum has increased since it launched about six years ago. As more products and use-cases are built on the Ethereum blockchain, this is expected to continue rising.