The Price Drops 20% But Ethereum TVL Growth Shows Improvement
According to a research report released Monday by Wall Street bank Citi (C), Ethereum (ETH) has underperformed so far this year, falling more than 20%. However, fundamentals are becoming better, and total value locked (TVL) on the Ethereum blockchain has increased significantly.
While user activity has been volatile in recent weeks, the fundamental backdrop is not all that murky,
analysts led by Alex Saunders
Ethereum Faces Growing Competition Despite Rising ETF Inflows
While Ether exchange-traded funds (ETFs) continue to attract inflows and search interest is increasing, Citi observed that TVL on the Ethereum network has increased significantly. According to the research, Ether ETF flows turned positive after the November U.S. election, with $3.2 billion in total inflows since their July launch. According to the report, Ethereum’s competitive edge has come under scrutiny due to stronger user growth on layer-2s and competing blockchains like Solana.
Relative ETH and altcoin performance may serve as a gauge for how optimistic the industry is regarding follow-through on regulatory clarity in the U.S.,
the report
Citi observed that the rise of Bitcoin’s (BTC) dominance, which is currently at multi-year highs above 60%, has corresponded with Ether‘s decline.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment