ERC20 tokens are tokens based on the Ethereum smart contract. If you’re using a cryptocurrency index tracker, you might notice that ERC20 tokens are very low in price. But they aren’t low simply because they’re ERC20 tokens. They’re low for the following reasons.

  1. The market they are made for: When a token is made, it is called a cryptocurrency. What this means is that the token can be used as a means of purchase from the developer’s business. So what happens when the business of the developers fails? Well, the price of the token will go down. However, these tokens can also be accepted as payment method by other businesses. But this is very rare since Bitcoin and Ethereum are the most preferred choices.
  2. Acceptability of the coin: When a coin is accepted by many businesses, its value increase as more and more units are distributed. If the coins are limited, then it will surely soar above Bitcoin but that depends on the limit and how fast it’s coin are being circulated.

I wish to mention a fact here though. Since ERC20 tokens are based on Ethereum, the stability and price of Ethereum could also affect ERC20 tokens. But much of the success is based on how well the developers idea are appreciated.

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