ETHER (ETH) prices have decreased 21% since January 31, struggling to maintain more than $ 2,800 over last week. Investor sentiment has been weakened and weakened, resulting in a 12% decrease in total cryptocurrency market cap during the same period.
The bull continues to hope for Ether Leeum’s dominance in the Total Value Locked (TVL), especially after the metrics have risen to the highest level since 2022.
Ether Lee Rim total value lock, eth. Source: Defillama
TVL measures the value of assets deposited in smart contracts in a variety of applications, including liquid staying, loan protocol, distributed exchange, calculation agricultural platform, crosschain bridge, tokenized assets and personal information mixers. Ether Lee’s tvL reached 21.8 million ETH on February 11, the highest level since October 2022. According to defillama data, this is 11% higher than last month.
Total value lock (TVL) market share. Source: Defillama
Meanwhile, BNB Chain’s smart contract deposit decreased 3% over 30 days and settled in 5.6 billion BNB (BNB). Ether Lee has a dominant position with 52.8% of the total Defi Market TVL, and Solana, the second largest player, maintains 8.2% share. According to Defillama data, the main Etherum -based applications are included with the loan platform AAVE with LIDO and Eigenlayer, the liquid steaking providers.
Over the last 30 days, Ether Lee’s highest performance distribution application (DApp) has included RoyCO protocols and CIAN protocols with a yield agricultural protocol and a CIAN protocol, followed by crosschain fluid platform Stakestone and Stargate Finance. Such data strengthens the concept that Ether Lee’s growth does not depend only on DApps that are well established.
Despite the increase in deposits, Ether Leeum fees have decreased 72%.
Despite the increase in deposits, the network fee did not maintain speed. Ether Lee Rium recorded a $ 8.1 million transaction fee at the week ended on February 10, showing a 72% decrease in two weeks ago. According to DAPPRADAR data, the main factor of this stagnation is that the volume of transactions decreased by 37%.
30 -day dapp transaction. Source: DAPPRADAR
In the context, the BNB chain has increased its trading volume by 60% over the last month, while Solana has been stable. In the Ether Leeum’s Layer -2 ecosystem, activities were downward. According to DAPPRADAR data, ARBITRUM has a 44% decrease in transactions for 30 days, while the base has decreased by 10%, while polygon has decreased by 4%.
Given that the overall network activity has decreased, there is little evidence that ETH will be excellent in the short term based on TVL growth. The fee remains a key element in maintaining the balance of ETH supply growth and issuance, and Ethereum lacks a clear route on increasing fees unless it has a negative effect on the current roll -up -based scaling solution. This trend has contributed to inflation pressure on ETH.
relevant: Ethereum Foundation places $ 110 million in Defi Apps. Congratulations on the community
In the case of ether holders, the main catalyst for more than $ 3,000 remains the potential approval of the stage King integration within the SPOT Ethereum Exchange-Traded Funds (ETF), which is currently being reviewed by the US Securities and Exchange Commission (SEC). Some analysts argue that the demand for these ETFs can prevent limited inflow because there is no stay yield.
Ether Leeum is a significant lead compared to the competitive network, remaining a dominant player of total value lock. However, unless the network fees are significantly recovered, ETH holders can rarely see the direct benefits with Ether Lee’s TVL growth, which reduces the possibility of ether surpassing a broader password market in the short term.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.