Ethereum, at press time, had a $71.6 billion TVL, close to its 1-year low of $67 million. However, it pales in comparison to the network’s historic ATH of around $249 billion.The attached chart underscores the bear market’s impact on Ethereum’s TVL. The recovery from June’s lows has been limited, despite the transition to Proof-of-stake. Ergo, chances are that the TVL will improve when the market enters a bullish recovery mode.
As far as Ethereum utility goes, the network maintained healthy demand for ETH in smart contracts between October 2021 and May 2022. The amount of ETH locked in smart contracts did drop drastically between May 2022 and 14 September, however. This, because DeFi suffered a major shock that spooked investors and recovery did not commence until after the PoS merge.Amid the turmoil, large addresses have been accumulating ETH. The supply held by the top 1% bottomed out in Q1 2022.
ETH appears to have found short-term support near the $1250 price range while its $1,346 press time price represented a slight premium.ETH investors should be keen to see if the price will maintain itself above the prevailing short-term support. A drop below this level may lead to sub-$1,000 price levels.Subscribe to get it daily in your inbox.