Strong conviction among long-term Ethereum holders, DeFi TVL up

The market value of ether (ETH), the second-largest digital asset by market capitalization, has been taking a heavy toll lately. The price of ETH is at the time of this writing hovering around $ 3,100, down 36 percent from its all-time high on November 10. Ether hasn’t seen this low valuation since early October 2021.

However, not all clouds on the horizon are dark, in fact there are strong indicators that many market participants have a strong conviction in the asset.

DeFi TVL rockets in 24 hours

Despite recent price action, the total locked value (TVL) in decentralized finance protocols (DeFi) increased by about 14 percent. The TVL jumped from $ 78.4 billion to $ 91.4 billion in less than 24 hours. However, a steep climb is still below 18 percent from the all-time high of $ 111.7 billion set on November 9.

The leading DeFi protocol maker (MKR) has a 17.7 percent dominance and $ 16.15 billion locked in smart contracts, most of which are collateral backing the DAI stablecoin.

At the same time, according to data From IntoTheBlock, the number of long-term ether holders, defined as addresses that have had ether for over a year, reached new highs with 40.87 million addresses at 48.42 million ETH. The volume held by these addresses increased from $ 48 million to $ 48.42 since December.

ETH no exchange continues to accumulate

The amount of ETH held by the top ten no-trade “whale” addresses has now risen to 25.7 million ETH. This metric has seen nothing more than an increase of around ten million ETH since the launch of the Ethereum 2.0 beacon chain.

Meanwhile, the top ten exchange addresses continue to decline, with just 3.57 million ETH in these wallets. Ether in exchange addresses shows a steady decline since mid-August 2020, and the ratio between holdings in exchange and non-exchange addresses is the highest since Ethereum’s inception.

As the price of Ethereum fell below $ 3,000 on Tuesday, gas rates in gwei per transaction rose to 188, the highest level since October 27. Average fees (in USD) are more modest, currently standing at $ 23 per transaction.

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Source: https://cryptoslate.com/strong-conviction-among-ethereum-long-term-holders-defi-tvl-up/

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