Coinbase announced today it’s intention to add ERC20 support to several of its suite of products. Historically, Coinbase announcements have caused huge retail influxes of retail investors, erratic price swings, and even allegations of market manipulation. That’s why it was a surprise today when Coinbase‘s latest announcement came not with a bang but a bearish whimper. Prices are down across the board today and there has been very little reaction to Coinbases momentous announcement. Whether or not the market chooses to react in the next 24 hours, one thing is for sure. Coinbase’s addition of ERC20 support will have wide-reaching effects around the cryptocurrency markets for years to come and cannot be overlooked.
ERC20 is the standard used by Ethereum tokens and smart contracts. It serves as an interface to which anyone wishing to issue a token or write a smart contract must comply. There are a total of 59,948 Ethereum contracts out there. Although Ethereum’s market share has shrunk, they almost single-handedly dominated the ICO bull market of 2017.