tl;dr
Ethereum's Total Value Locked (TVL) has surged by $7.79 billion in the past week, making it the blockchain with the highest growth in TVL. This rise aligns with Ethereum's temporary price increase to $4,000, signaling renewed investor confidence. Ethereum's TVL has grown from $70 billion to $77.15 b...
Ethereum's Total Value Locked (TVL) has surged by $7.79 billion in the past week, making it the blockchain with the highest growth in TVL. This rise aligns with Ethereum's temporary price increase to $4,000, signaling renewed investor confidence. Ethereum's TVL has grown from $70 billion to $77.15 billion, indicating increased adoption and popularity among investors. The rise in TVL suggests heightened trust in Ethereum-based decentralized applications and protocols.
On December 2, the Ethereum TVL was a little less than $70 billion. But today, the metric has grown to $77.15 billion. TVL is a crucial metric within the cryptocurrency and decentralized finance (DeFi) ecosystem. It represents the total value of assets locked or staked in decentralized applications (dApps), smart contracts, or blockchain-based protocols. This metric serves as an indicator of the growth, adoption, and user confidence in DeFi platforms. A higher TVL suggests that more users are engaging with these systems, signifying trust in their functionality and security.
If this trend persists, it could potentially drive further appreciation for ETH price, as rising TVL often correlates with increased network activity and demand for the asset. It is also important to note that Tron’s and Solana’s TVL also increased by $900.23 million and $618.40 million. Beyond that, Glassnode data showed that Ethereum exchange inflow volume has dropped to the lowest level in over a month. When exchange inflow rises, it means holders are willing to sell. However, since it decreased, it indicates that many ETH holders have decided not to liquidate their assets, which is bullish for the price.
The ETH/USD 3-day chart shows that the cryptocurrency traded within a descending triangle between June and November. A descending triangle is a commonly recognized bearish chart pattern defined by a falling trendline connecting a series of progressively lower highs and a flatter trendline forms along a consistent price level, acting as support as the asset price tests it multiple times. The descending triangle typically signifies that sellers are gaining control, potentially leading to a breakdown below the support line. However, ETH’s price has broken out of this channel, suggesting that the cryptocurrency’s value might trade higher.
If this trend continues, then Ethereum could climb above $4,096 and hit $4,200 in the short term. However, if selling pressure increases and the Ethereum TVL drops, this prediction might not come to pass. In that scenario, ETH might decrease to $3,175.