Posted 2 years ago | by Ben Armstrong

Ethereum Still Thriving—Price isn't the Most Important Thing

The Ethereum ecosystem is only a few years old, but there are numerous reasons to think that development of new Ethereum-based assets will continue. The ETH platform has more than 2000 dApps that run in the network, which is far more than the number of dApps that use Tron or EOS.

Prices are often looked at the health of the token markets is judged, and to some extent this does make sense. Decentralized assets do need to reward the entities that operate the nodes that make the network run on a daily basis.

But there is a lot more to Ethereum, or cryptos more generally than a simple exchange price for the token. Developing real-world solutions that use tokens is what will push them into mainstream usage, and the Ethereum network is at the forefront of that push.

Ethereum as a Base for Development

If we look at the top 50 tokens measured by market-cap, a minimum of 20 are based on the ERC-20 architecture. It looks like ERC-20 has found its footing, and a healthy development culture has grown up around it.

One of this year's biggest tokens is Chainlink, which seeks to solve the 'oracle problem' that smart contracts face. Chainlink tokens (LINK) have done very well, and the platform is specifically targeting ETH smart contracts as their first target market.

ETH Will Work in the Real World

A smart contract is a near perfect solution for creating contracts that have no thrid-party enforcement agent, but there is an issue when those smart contracts have a connection to a real-world event (like a baseball game).

In this situation, the smart contract relies on an 'oracle' to determine the outcome of the smart contract. Chainlink's project is clearly popular, and that speaks highly of ETH as a platform overall.

Ethereum has helped many companies work toward new ways of doing business, and despite all the challenges, it is still a much more efficient system than the ones we have in place today. A SWIFT transfer can take weeks to be settled, and they don't offer any sort of smart contract system to global clients.

A Brand New Commodity

The CFTC, the commodities regulator in the USA, recently decided that ETH is a commodity, and this could open the door to more liquidity in the ETH markets.

If any of the major banks starts offering ETH futures contracts that aren't cash-settled, the demand for ETH will undoubtedly rise. It could also make ETH more attractive as an asset class, as it would have an organic demand from the financial sector.

The day-to-day price of ETH does matter, but it is important to keep an eye on the bigger picture, and all of the positive developments that are taking place in the ETH ecosystem.

About Ben Armstrong

ef4f73e9ddeb61becab57469962fa946?s=90&d=blank&r=g Ethereum is Thriving, But Price Isn't The Most Important ThingBen Armstrong is a YouTuber, podcaster, crypto enthusiast, & creator of BitBoyCrypto.com. Better known as BitBoy Crypto, he works hard to educate and inform the crypto community.

Ben has been involved with the world of cryptocurrency since 2012 when he first invested in Bitcoin. He used Charlie Shrem's BitInstant & lost Bitcoin in the Mt. Gox hack.

In 2018, Ben decided to go "full-time crypto" and focus all of his time and energy into expanding the reach of crypto.

If you have any questions or comments please feel free to email him at BitBoy@BitBoyCrypto.com or contact him on Twitter @BitBoy_Crypto.