Ethereum (ETH) experienced a price spike throughout April, and this spike corresponded with a major milestone for Ethereum Layer 2 networks: Total Value Locked (TVL) exceeded $10 billion as of April 14, according to L2Beat, an analysis and research website on Ethereum Layer 2 scaling.
This marks a new record for the amount of ETH locked on the Ethereum network since the Shapella update. With the TVL of Ethereum Layer 2 networks reaching an all-time highmany speculate on the potential for further growth and adoption of these complementary networks.
After the Shapella update was implemented, the price of Ethereum (ETH) became more volatile. Still, the Ethereum network has received a lot of attention, as evidenced by the fact that the majority of deposits have been made on its beacon chain. There have been more deposits compared to withdrawals on the network.
As more and more users turn to Layer 2 solutions to address high fees and congestion on the Ethereum mainnet, it remains to be seen how this trend will continue to evolve in the coming months.
Source: Nansen
nansen records show that since the Shapella update, the amount of ETH locked on the Ethereum network has hit a new all-time high. As of April 24, the total amount of ETH locked was 18,879,775 ETH.
Ethereum Layer 2 Networks View TVL Log
TVL is a metric used in the world of cryptocurrencies to measure the number of digital assets locked in various protocols or applications. It is often used as an indicator of the level of activity and demand within a specific DeFi (decentralized finance) ecosystem.
The TVL of Ethereum Layer 2 networks, which are complementary networks to Ethereum, also increased along with the rising value of ETH in April, hitting an all-time high of $10 billion in mid-April.
Source: L2Beat
Despite a drop in cryptocurrency prices, the TVL has since held at around $9.22 billion, more than double its value at the start of the year. according to L2Beata layer 2 analytics site.
However, it is worth noting that there is currently approximately 4.7% of the total ETH on the Beacon chain awaiting full output, which includes rewards amounting to 894,671 ETH. Additionally, 27,809 validators are currently waiting for a full release.
Ethereum (ETH) total market cap currently at $218 billion on the daily chart at TradingView.com
Whale interest in ETH falls as short-term holders exit positions
Meanwhile, the recent data has revealed a decline in whale interest in ETH, with the total number of addresses holding 10+ ETH hitting a four-month low of 349,078.
This can be attributed to the growing long/short spread, which suggests that many short-term holders have sold their holdings and exited their positions.
📉 #ethereal $ETH Number of addresses with 10+ currencies just hit a 4-month low of 349,078
The previous 4-month low of 349,082 was observed on April 23, 2023
See metric:https://t.co/6ggy1nLbSD pic.twitter.com/BsKhJDysPR
— glassnode alerts (@glassnodealerts) April 24, 2023
As a result, the future of ETH prices will largely depend on the behavior of holders in the long term.
Despite this drop, the current price of Ethereum in CoinMarketCap is $1,829.37, showing a decrease of 1.48% in the last 24 hours.
Only time will tell if long-term holders will continue to support ETH or if waning interest in whales will have a lasting impact on its value.
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