Ethereum Surges To Record High; DeFi Tokens Valuation Near $100B
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Ether’s Renewed Spike
The Ethereum ecosystem is experiencing an uptrend as multiple assets are causing the cumulative market value of decentralized finance (DeFi) tokens to approach $100 billion, a level not seen since May 2022. Meanwhile, ETH reached $3,125 earlier today, its highest value since April 2022, according to data from CoinGecko.
Over the last four months, ETH has had a 95% gain, attracting the attention of analysts who believe Ethereum may soon become the second crypto asset available to US investors through a spot exchange-traded fund (ETF). This optimism comes after the successful introduction of 10 spot Bitcoin ETFs in January.
Despite Bitcoin’s excellent success last year, with a 92% spike since mid-October, it has witnessed a slight drop in the past week, trading around $51,250 per current Coingecko data, representing a 2% loss over seven days. As a result, investors are shifting their focus to Ethereum and its fast-growing ecosystem.
More importantly, the uptrend is not restricted to Ethereum, as Worldcoin, a digital identification project, continues to soar. WLD recently hit an all-time high of $8.74, representing a 266% rise in just two weeks.
Performance Of Ethereum Scaling Solution
Ethereum Layer-2 scaling solutions have emerged as standout performers in recent market dynamics, with Mantle (MTN) leading the pack after achieving an all-time high above $0.90 on Sunday night. This spike is part of Mantle’s continuous rally, which has seen a 180% growth since last October.
Reports indicate that Mantle’s total value locked (TVL) increased from $90 million to $722 million within the same period. In addition, Metis (METIS) has also recorded significant growth, with a 22% increase in the last week and a quadrupling of value within the previous ten weeks. Also, its overall evaluation increased from $100 million in mid-December to $861 million on February 26.
Testing The $100 Billion Threshold
The value of decentralized finance (DeFi) assets has yet to replicate its all-time high since May 2022 despite increased market optimism. DeFi coins have a combined market valuation of $97.5 billion at the time of writing.
Like its market valuation, DeFi protocols’ TVL has increased by $23.2 billion, reaching its highest level in 22 months, excluding liquid staking projects. It is worth noting that the introduction of liquid staking has been a critical element in the DeFi industry’s recent success.
The liquid staking token released by Lido, StETH, accounts for over 31% of DeFi’s market capitalization. When liquid staking tokens are included, the DeFi TVL rises to $131 billion, with StETH accounting for roughly a quarter of the total value.
Hence, the recent development demonstrates the considerable impact that liquid staking has had on the burgeoning DeFi market. Furthermore, analysts predict that the Ethereum Dencun upgrade will significantly affect the next bullish run of layer 2 DeFi tokens.
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