Ether price has declined by 21% since January 31, struggling to maintain levels above $2,800. Investor sentiment weakened amid a 12% drop in the total cryptocurrency market cap during the same period. Despite this, Ethereum's total value locked (TVL) reached 21.8 million ETH on February 11, its highest since October 2022, marking an 11% increase compared to the previous month. Ethereum commands 52.8% of the total DeFi market's TVL, led by applications such as Lido and Aave. However, Ethereum's accrued transaction fees plunged 72% to $8.1 million for the week ending February 10 due to a 37% drop in transaction volume. This decline contrasts with BNB Chain's 60% increase in transaction volume and suggests that Ethereum's growth in TVL may not translate to an ETH price increase without a boost in network activity or fees. The approval of spot Ethereum ETFs may be a primary catalyst for a potential price rise above $3,000, although institutional demand appears limited due to the absence of staking yield. In summary, while Ethereum maintains a dominant position in TVL, a recovery in network fees is critical for ETH holders to see benefits from this growth.

Source 🔗