Total Ethereum (ETH) Locked Hits New Highs On Increase In Deposits Over Withdrawals

Christian Encila

2 years ago

4 mins read

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Ethereum (ETH) has seen a surge in price throughout April, and this increase has corresponded with a significant milestone for Ethereum’s Layer 2 networks: the total value locked (TVL) has surpassed $10 billion as of April 14, according to L2Beat, an analytics and research website about Ethereum layer 2 scaling.

This marks a new record high for the amount of ETH locked on the Ethereum network since the Shapella upgrade. With the TVL of Ethereum’s Layer 2 networks hitting an all-time high, many are speculating about the potential for further growth and adoption of these companion networks.

After the Shapella Upgrade was put in place, the price of Ethereum [ETH] became more volatile. Still, the Ethereum network has gotten a lot of attention, as shown by the fact that most deposits have been made on its beacon chain. There have been more deposits compared to withdrawals on the networrk.

As more and more users turn to Layer 2 solutions to address the high fees and congestion on the main Ethereum network, it remains to be seen how this trend will continue to evolve in the coming months.

Source: Nansen

Nansen’s records show that since the Shapella upgrade, the amount of ETH locked on the Ethereum network has reached a new all-time high. As of April 24, the total amount of ETH locked was 18,879,775 ETH.

Ethereum Layer 2 Networks See Record TVL

TVL is a metric used in the cryptocurrency world to measure the amount 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’s Layer 2 networks, which are complementary networks to Ethereum, also increased along with the rising value of ETH in April, peaking at a record high of $10 billion on mid-April.

Source: L2Beat

Despite a decline in crypto prices, the TVL has since remained at around $9.22 billion, more than double its value at the start of the year, according to L2Beat, a layer 2 analytics site.

However, it is worth noting that there is currently approximately 4.7% of the total ETH on the Beacon chain waiting for full exit, which includes rewards amounting to 894,671 ETH. Furthermore, 27,809 validators are currently waiting for a full exit.

Ethereum (ETH) total market cap currently at $218 billion on the daily chart at TradingView.com

Whale Interest In ETH Down As Short-Term Holders Exit Positions

Meanwhile, Glassnode’s recent data has revealed a decrease in whale interest in ETH, with the total number of addresses holding more than 10 ETH reaching a four-month low of 349,078.

This can be attributed to the increasing long/short difference, which suggests that many short-term holders have sold their holdings and exited their positions.

📉 #Ethereum $ETH Number of Addresses Holding 10+ Coins just reached a 4-month low of 349,078

Previous 4-month low of 349,082 was observed on 23 April 2023

View metric:https://t.co/6ggy1nLbSD pic.twitter.com/BsKhJDysPR

— glassnode alerts (@glassnodealerts) April 24, 2023

As a result, the future of ETH’s prices will depend heavily on the behavior of long-term holders.

Despite this decline, the current Ethereum price on CoinMarketCap is $1,829.37, showing a 1.48% decrease in the past 24 hours.

Only time will tell if long-term holders will continue to support ETH or if the decline in whale interest will have a lasting impact on its value.

-Featured image from CoinChapter

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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