Ethereum based tokens processed 36,000 transactions yesterday, nearing an all-time high of 46,000 reached on June the 12th when the BAT ICO was taking place.
That means the combined transaction volume of all ethereum tokens now ranks third in the digital currency space, only after ethereum and bitcoin, surpassing all other digital currencies, such as litecoin.
It’s not clear whether ICO sales themselves are also counted in the transaction numbers, with Ethplorer stating they in beta, so the reliability of their data is uncertain, but it is all open-source with the code publicly viewable.
They allow you to explore any token, ranking the top 50. The token in second place will surprise you because you have probably never heard of it, but the rest are as expected.
Veros does not appear to have any innovation, except to combine one of the more familiar schemes with eth’s smart contracts.
According to their whitepaper, the token has an affiliate network of sorts which pays users based on the number of other users they refer or the number of merchants that start accepting Veros for payments.
Yes, it probably is what it sounds, likely a pyramid scheme of sorts, but we can’t say so unless we are very sure, so we won’t.
What we can say is that Golem taking first position reflects its market cap which currently stands at more than half a billion dollars, making it the most valued of all tokens.
That value clearly appears to reflect utility as Golem has the highest number of transactions too in the past three months, indicating that fundamentals do matter and that it’s not all just speculation.
This can be further illustrated if we account only tokens that have been listed on Coinmarketcap. That would effectively rank Augur second by transactions, reflecting its second ranking by market cap too, suggesting there is a strong correlation between utility and valuation.
How far such correlation goes is unclear as some of the tokens are not listed on coinmarketcap, while they are shown on Ethplorer – which appears to algorithmically measure all ECR20 tokens.
But transaction volumes have long been suggested as an indicator of value, with digital currencies usually showing a strong correlation, although it’s not clear whether this relationship is a lagging or suggestive indicator.
What is clear is that a vibrant, growing, and expanding, tokens ecosystem is being built, handling and processing a significant amount of value, more than many digital currencies, all through ethereum’s decentralized platform.