Reports are surfacing about an incredible rally in the ERC 20 market cap, and now the Ethereum market cap has succumbed to the rectification. In a shocking maneuver, the 2nd largest cryptocurrency by market cap has lost around 26 percent of it’s market cap so far in September, marking a serious market shift. Per the given data, the Ethereum market cap was toppled by the ERC-20 on the charts.
It can be clearly noticed that as the crypto market unexpectedly curved down, the Ethereum market has lost its strong position over the ERC-20. Post-Black Thursday event, both the ERC-20 and Ethereum market were moving side by side, but only until June. ERC-20 rallied past Ethereum in July, only to fall back to the February 2020 position under Ethereum.
Ethereum market cap decline converts into further issues
Per the DeFi Pulse data, till 2nd September, TVL was on $9.6 billion, but as the business got off, it touched an unbelievable low of $6.11 billion.
While the dwindling Ethereum market cap is recovering, ERC-20 records a significant gain in September. Till now, it seems that it has become the highest curving difference between ERC 20 and Ethereum market cap.
Per Arcane’s researchers, approximately 17% of TVL decline can be noticed by the Sushi Protocol which has affected the whole DeFi ecosystem. Although the ERC-20 and DeFi are facing losses, at that time, they were on a bullish path. The surge in tokens such as ELF, SNX, LEND and REN has been recorded owing to the increased address activities. The rising ETH gas cost also plays a major role in DeFi decline. The ecosystem is yet to be affected, but the issues of its scalability are being highlighted already, even potentially putting the dApp market at risk.