Ethereum's Total Value Locked (TVL) surged by $7.79 billion over the last week, establishing Ethereum as the frontrunner in TVL growth. This noteworthy increase correlates with Ethereum's price momentarily reaching $4,000, signaling renewed investor confidence in the digital currency.
No other blockchain matched Ethereum's remarkable growth during this time. Although other blockchains have seen advancements, none have kept up with Ethereum's pace.
On December 2, Ethereum’s TVL was slightly under $70 billion; today, it has climbed to $77.15 billion. TVL is vital within the cryptocurrency and decentralized finance (DeFi) space.
It measures the total value of assets locked in decentralized applications (dApps), smart contracts, or blockchain-based frameworks. This metric is an essential indicator of the expansion, adoption, and user trust in DeFi platforms.
A higher TVL suggests increased user interaction with these systems, demonstrating confidence in their security and functionality. Conversely, a lower TVL points to reduced liquidity, hinting at declining deposits on the blockchain.
The rise in Ethereum’s TVL reflects the cryptocurrency's rising adoption and popularity among investors. This increase indicates a growing trust in Ethereum-based decentralized applications and protocols.
According to DeFiLlama, Ethereum Total Value Locked continues to rise. If this upward movement endures, Ethereum's price may appreciate further. Higher TVL often aligns with more network activity and demand for the asset. Notably, Tron’s and Solana’s TVL also rose, by $900.23 million and $618.40 million respectively.
Furthermore, Glassnode data revealed that Ethereum exchange inflow volume descended to its lowest in over a month. Typically, an increase in exchange inflow means holders are prepared to sell.
A decline, however, represents a reluctance to liquidate assets, a positive indicator for the price.
According to Glassnode, Ethereum Exchange Inflow has diminished. If Ethereum consistently builds on this momentum, it could soon surpass $4,096 and potentially reach $4,200. The ETH/USD 3-day chart previously exhibited a descending triangle, recognized as a bearish chart pattern characterized by a falling trendline and a stable support line.
Usually, this pattern suggests increasing seller control, possibly leading to a breach below the support level. Nevertheless, ETH has broken through this channel, signifying a likely upward trend in its value.
Per TradingView, Ethereum 3-Day Analysis shows promising signs. If selling pressure escalates and Ethereum’s TVL diminishes, the upward prediction might not materialize. In that eventuality, ETH's price could fall to $3,175.