Evaluating Ethereum’s network and ETH’s current demand levels

10 Sept 2023

There are some areas in ETH’s journey this year that inspire confidence. Ethereum’s total value locked in ETH deposit contracts just achieved a new historic peak at over 28.7 million ETH.

  • Ethereum’s TVL continued bleeding as the market extended its uncertainty.
  • ETH’s ecosystem maintained some health and top whales have been buying the dip.

The crypto market just concluded another one of its most dormant weeks so far in 2023. Ethereum [ETH] and other top networks have experienced a significant slowdown in activity as is usually the case under such circumstances.
The impact of the current market conditions was evident in multiple facets of the Ethereum network. This includes its TVL, which was a long way from its historic high. It had a total value locked of $21.42 billion at the time of writing, which is a stark contrast compared to its historic peak above $108 billion in 2021.
Despite the slightly improved conditions so far this year, the market is still in a state of caution. As such, we have seen significant outflows in TVL since April. An indication that investor confidence in ETH’s bullish potential is not there yet.
Regardless of the slow and negative TVL growth in the last few months, there are some areas in ETH’s journey this year that inspire some more confidence. For example, Ethereum’s total value locked in ETH deposit contracts just achieved a new historic peak at over 28.7 million ETH.
The total value locked also confirms that Ethereum’s ecosystem is still experiencing healthy network activity. But how is ETH fairing especially as the market appears to be stuck in limbo?

ETH supply distribution reveals something interesting about whale activity

Now that ETH’s total value is up, let’s take a look at what has been happening with whale activity. According to its supply distribution metric, addresses holding over 10 million ETH (denoted in red) have been accumulating in the last 4 weeks. This category controls the largest share of ETH’s circulating supply at 23.55%.
Addresses in the 10,000 to 100,000 ETH category have also been accumulating ETH since the start of September. However, the other top whale categories have been contributing some sell pressure which may explain why the sell pressure has been canceling out the prevailing demand.

So, what’s next for ETH?

ETH’s price action has been stuck at its current support level since the start of September. It exchanged hands at $1,633 at press time.
ETH’s money flow indicator already shows that liquidity has been flowing into ETH. In other words, there has been some accumulation within the current support zone, highlighting the gradual return of optimism. However, caution is still warranted since the market is not out of the woods yet.

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ethereum will forever be yena believe you me
After Bitcoin, Nothing beats Ethereum in usage and community
Ethereum's network has undoubtedly experienced significant growth and demand in recent times. This surge in activity underscores its importance in the world of blockchain and decentralized applications. It's fascinating to witness how Ethereum continues to evolve, adapt, and handle increased traffic. As it navigates scalability challenges and transitions to Ethereum 2.0, it remains a foundational pillar of the crypto space, promising an exciting future for blockchain technology and decentralized finance.
Ethereum is still the best project up in these space
Ethereum idea of smart contract popularize tokenization such that anything can be tokenized
Ethereum demand is going up as more upgrade keep coming to the Network
Still think ethereum is pretty undervalued for the most part. Thanks for an interesting read