The price of Ethereum (ETH) has skyrocketed throughout April, corresponding to an important milestone in the Ethereum Layer 2 network: according to data from analysis company L2Beat, as of April 14th, the total value locked in (TVL) has exceeded $10 billion and research websites related to Ethereum Layer 2 extensions.This marks a new high in the number of ETHs locked onto the Ethereum network since the upgrade of Shapella
The price of Ethereum (ETH) has skyrocketed throughout April, corresponding to an important milestone in the Ethereum Layer 2 network: according to data from analysis company L2Beat, as of April 14th, the total value locked in (TVL) has exceeded $10 billion and research websites related to Ethereum Layer 2 extensions.
This marks a new high in the number of ETHs locked onto the Ethereum network since the upgrade of Shapella. With the TVL of the Ethereum Layer 2 network reaching a historic high, many people are speculating about the potential for further development and adoption of these partner networks.
After the implementation of the Shapella upgrade, the price of Ethereum [ETH] has become more volatile. Nevertheless, the Ethereum network has received a lot of attention, as evidenced by the fact that most deposits occur on its beacon chain. Compared to online withdrawals, deposits are more common.
As more and more users turn to Layer 2 solutions to address the high costs and congestion issues of Ethereum main networks, it remains to be seen how this trend will continue to develop in the coming months.
According to Nansen's records, since the upgrade of Shapella, the number of ETHs locked on the Ethereum network has reached a historic high. As of April 24th, the total number of ETH lockdowns was 18879775ETH.
Ethereum Layer 2 Network Viewing Record TVL
TVL is an indicator used in the cryptocurrency world to measure the number of digital assets locked in various protocols or applications. It is typically used as an indicator of activity and demand levels in a specific DeFi (decentralized finance) ecosystem.
The TVL of the Ethereum Layer 2 network, which serves as a supplementary network to Ethereum, also increased in April with the increase in ETH value, reaching a historic high of $10 billion in mid April.
According to data from the second tier analysis website L2Beat, although cryptocurrency prices have decreased, TVL has remained around $9.22 billion since then, more than twice the value at the beginning of the year.
However, it is worth noting that currently, about 4.7% of the total ETH on the Beacon chain is waiting for complete exit, with a total reward of 894671 ETH. In addition, there are currently 27809 validators waiting for complete withdrawal.
As short-term holders withdraw from their positions, whale interest in ETH decreases
Meanwhile, recent data from Glassnode shows a decrease in whale interest in ETH, with the total number of addresses holding over 10 ETHs reaching a four month low of 349078.
This can be attributed to the increase in the long/short difference, indicating that many short-term holders have sold their holdings and exited their positions.
Therefore, the future of ETH prices will largely depend on the behavior of long-term holders.
Despite this decline, the current Ethereum price on CoinMarketCap is $1829.37, which has fallen by 1.48% in the past 24 hours.
Only time can prove whether long-term holders will continue to support ETH, or whether the decline in whale interest will have a lasting impact on its value.
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