Ethereum's value falls despite a 3-year high in TVL. We analyze the current status and potential future.
Ethereum's Price Drop and Current Situation
Since January, Ethereum's price has declined by 21%, failing to sustain above $2,800. This downturn coincides with a 12% drop in total cryptocurrency market capitalization, indicating weakened investor sentiment.
Ethereum Leads the DeFi Sector
Ethereum maintains its dominance in total value locked (TVL), having reached 21.8 million ETH. With an 11% increase in the last month, Ethereum continues to lead the DeFi sector.
Decline in Network Fees and Market Impact
Network fees for Ethereum dropped by 72%, even with rising deposits. This decline is attributed to a 37% drop in transaction volume. Meanwhile, other networks like BNB Chain have shown increased activity.
Despite record TVL levels, Ethereum's price shows little improvement. A significant recovery in network fees is crucial for impactful market influence.
