Despite the declining number of ICOs, Ethereum is still dominant in the sector as it is used by more than 85 percent of all ICOs, leaving Stellar and NEO far behind.
Declining Number of ICOs Coudn’t Dethrone Ethereum
Graph showing the breakdown in ICO platform adoption (Source: CoinGecko)
Nonetheless, the 80 percent drop in the number of funds ICOs raised in Q3 did very little to dethrone Ethereum as the top ICO platform.
The report indicates that the ICO market is still predominantly dependant on the Ethereum ERC20 token standard, with over 85 percent of successful ICOs issued on Ethereum.
However, the report showed an increasing trend of token issuance on other platforms. And while the difference between the number of ICOs issued on Ethereum and its second contestant Stellar is astounding, it demonstrates a bright future for upcoming platforms.
Just under 6.5 percent of the 193 ICOs were launched on Stellar, while NEO, coming in third, hosted 3.6 percent of the ICO market. NEM, a platform that pitches faster transaction speed with a lower transaction cost saw a rise in ICOs issued, coming in fourth with 2.4 percent.
However, EOS is yet to take off with only one successful ICO issued using the platform.
The Current State of the ICO Market
The ICO market has been continuously shrinking from quarter to quarter, the report shows that the slow downward trend of cryptocurrency prices and market value that has characterized 2018 continued into the third quarter.
However, despite the downward trend that plagues the crypto market, CoinGecko’s data shows that trading volumes have been growing steadily. Four out of the top five cryptocurrencies in use today are more valuable than they were in November 2017, with the loser being Ethereum.
According to the report, the fact that Ethereum is down 22 percent year-on-year is most likely due to the decreasing number of ICOs, as only 388 ICOs (of which 193 were successful) were launched in the third quarter of 2018.
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