Top Crypto News Today: Ethereum(ETH) TVL Loses More Than $2.8 Billion After Bellatrix Upgrade

  Key Takeaways 

• ETH loses a massive amount of TVL 
• Ethereum remains on top in the DeFi list despite the TVL drop
• The second largest crypto token ETH tested at $2,000 in August 

Ethereum lost a massive amount of total value locked (TVL) in August, 2022 

Ethereum’s total value locked tumbles from $37.32 billion to $34.36 billion. The token continues to see a drop in the TVL from its major decentralized finance applications (DeFi). The blockchain that introduced Smart Contracts to DeFi has experienced a volatile trajectory of inflows and outflows of ETH. 

The Ethereum blockchain has been the most widely preferred network for developers to build defi applications. From Dapps to DeFi, Ethereum is the most used network for its vibrant community of users and par excellence quality in technology as compared to other networks. Ethereum is the platform that gave birth to some of the most prominent DeFi projects like Maker DAO, Aave, Sushiswap, 1 Inch and many more. Check out the top projects on Ethereum here. 

With the market showing slow signs of recovery from its bearish zone, the charts may show volatile patterns of inflow majorly due to two or more reasons like mounting fear of new developments on the ETH network, cash flow shortage and increasing inflation across countries. Hitting our memory tab, one would realize the bullish market of 2021 which fell dramatically in 2022 post the Luna stablecoin crash. Ethereum’s TVL has shed 7% of its opening day value.  

According to DeFi Lama, the total value locked (TVL) of Ethereum was $37.32 billion on August 1, 2022 and it fell sharply to $34.36 billion on August 31, 2022. Ethereum had reached an all time high in 2021 and tried to maintain support at the beginning of the year, reaching $100.99 billion.

Ethereum’s TVL is largely coming from Dapp users

Ethereum total value locked is based on the overall user activity and the performance of decentralized applications of Ethereum’s ecosystem.  MakerDAO, the most popular dApp on Ethereum lost 8 billion which is 5.21% of its value locked. Lido, a liquid staking protocol with more than $6 billion locked, shed 1.8% of its value. DEXs’ like Curve Finance and Uniswap also didn’t do well. 

AAVE, one of the most popular dApps dipped by 2% to around $4.6 billion and lending platform Compound dipped by 8.32%. 

Additional Read: BTC Price Nosedives Below $19000

The DeFi master Ethereum still rules the decentralized financial world 

ETH has lost over $ 60 billion in TVL since January 5, 2022. Yet, it topped the blockchain list on September 3, 2022. (Source: DeFiLama)  The Merge completion will unfold more surprises for ETH supporters as the upgrade is slated to complete by September 20, 2022. 

Ethereum Price retested to attain a $2,000 position

Before the Fed meeting notes were released ETH price reached a peak of $2,000 for a brief period. Ethereum has reached the 2k target a couple of times. Ethereum reached the mark in May 2022. The asset reached a high of $2,022.79 on August 14, 2022. Since then the asset has been through several corrections in price. 

Additional Read: Ethereum Price Prediction

The Ethereum Beacon Merge Story So Far

The Beacon chain – proof of stake standalone network was developed in 2021 to integrate with the original proof of work Ethereum blockchain. The Merge is scheduled in three phases 0-1- 2. The 0 phase is the Beacon chain, phase 1 Sharding and the last phase includes moving from Ethereum Virtual Machines to eWASM – Ethereum WebAssembly. The Merge is scheduled to complete between September 16- 20, 2022. 

Source: BeinCrypto, DeFiLama