At the weekend, Ethereum briefly broke the psychologically important mark of $ 2,000. Which factors are currently driving the ETH price rally? The market update.
At $ 2,042.93, Ethereum hit a new all-time high on Saturday
Since then, the second largest cryptocurrency by market capitalization has been in a consolidation phase. The ether price is currently hovering between $ 1,800 and $ 2,000.
In the past 24 hours, Ethereum is down 3.22 percent and at press time , an ETH costs $ 1,878.28 . On a monthly basis, Bitcoin Era app has nevertheless achieved impressive growth and in the last 30 days alone, Ether has increased by more than 50 percent. In the following we take a look at three key factors that contribute significantly to the enormous price growth of ETH.
Decentralized Finance (DeFi) on Ethereum continues to grow
According to DeFi Pulse’s Total Value Locked Indicator, the current total value of capital managed by DeFi projects is more than $ 41 billion. The term Total Value Locked (TVL) is used to measure the amount of capital that each individual DeFi protocol maintains.
For example, if a decentralized exchange (DEX) like UniSwap (UNI) has locked $ 2 billion in the protocol to provide liquidity, then that means the TVL of the protocol is $ 2 billion.