Activity in the Cryptocurrency Market Is Imperceptibly Increasing - ERC20 Tokens Independent

Activity in the Cryptocurrency Market Is Imperceptibly Increasing - ERC20 Tokens Independent

Researchers at the analytical platform Santiment came to the conclusion that some ERC-20 tokens no longer correlate with Ethereum, as they usually did before. This is reported on the company’s blog.

Analysts say that the prices of at least ten tokens of the ERC-20 standard have recently “lived their own lives”, amid the stagnation of the second most capitalized cryptocurrency.

In the graph below, you can see that the BAT and ZRX tokens, which recently appeared in the Coinbase Pro listing, have completely ceased to correlate with the Ethereum price over the past two months:

At the same time, it can be noted that the BAT, ZRX and ETH price movement earlier was almost synchronous.

The rise in the price of the BAT token was significantly intensified after the developers introduced the Chromium-version of the Brave browser, which, according to them, is 22% faster. Another powerful growth driver was the inclusion of BAT in the Coinbase Pro listing.

The growth of ZRX also accelerated after adding to Coinbase Pro, after which the price of tokens “freed from the shackles” of Ethereum. In addition, Santiment notes an increase in the price of the MKR token compared to ETH.

The total capitalization of ERC-20 tokens currently stands at $12.8 billion, which is just over 60% of Ethereum’s total market value. According to analysts, the lack of correlation of some tokens from the cryptocurrency platform Ethereum suggests that these projects are becoming more or less mature and independent. As a result, some of the assets of the ERC-20 standard began to grow, without waiting for the restoration of the air.

According to the researchers, the disconnection from ETH with a tendency to increase the price gap, high activity of various projects and activity of mentioning coins in social media can be signs of recovery in this segment, which can lead to an increase in the cryptocurrency market as a whole.

“Logically this price movement should eventually find its way to ETH as well. A similar pattern happened in 2016-2017 when ETH launched the explosive bull run and BTC followed. But the market is irrational enough that we prefer to stay in the present moment. And at this moment… the price dynamics of some tokens are now decoupled [from ETH]”, the Santiment blog post says.

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