Ethereum’s TVL takes a massive hit, but here’s a sign of hope


Ethereum [ETH] dropped by 18% in less than a week after bouncing off the $2,200 support level. This happened after BTC suffered another shock and dipped to $30,000. The entire crypto market has gone into a frenzy in recent days with Luna and UST headlining the fallen market situation.

Particularly bearish sentiment has swept across ETH in recent days, with its volume dropping almost 25% in the past 24 hours. The largest altcoin by market capitalization also had metrics suggesting a period of patience from the ETH community.

Daily exchange inflows tipped at $170 million, indicating an upset market for investors. Another interesting development saw the total ETH TVL in DeFi take a massive hit, as per DefiLlama. It reduced by a whopping $11 billion on 9 May and 10 May due to reduced market interest in DeFi and crypto as a whole after recent setbacks.

In addition, the number of lost addresses has reached a new record on the ETH network at press time. 27.4 million addresses was the highest number of lost addresses. This significant number was recorded after May 2020.

The transaction volumes on the network have also spiked in recent days. Furthermore, the transaction volumes reached a 3-month high of 93,188 ETH at the time of writing, while the previous high was recorded on 10 May at 93,088 ETH.

What the experts say…

As the atmosphere of “extreme fear” looms over global markets, analysts remain confident about the recovery of cryptocurrencies.

Edward Moya, senior market analyst at the foreign-exchange brokerage Oanda, stated,

“If the USD 30,000 level breaks, that could trigger a flash crash environment if several whales unload. I tweeted this April 17, 2022: ‘I am getting 2021 April-May vibes, which means potential bearish until July. Things I’m watching [include] price action, inability to effectively breakout, NFTs go off.”

On the other hand, Tyrone Ross, CEO of Onramp Invest, a crypto-asset platform for financial advisors and businesses, said

“When something is on sale and you like it, you should buy it. I think we’re not at mass adoption yet, but we’re at mass acceptance. If your time horizon is 10 years, I think it’s a good time to buy it.

While some analysts feared a crash before July 2022, others are trying to fill the cracks. It is surely a ‘wait and watch’ market situation with macroeconomic controls largely at play here.


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