Ethereum’s TVL Surges by Over $7.7B in 7 Days. Will Price Follow?

Ethereum (ETH), the layer-1 blockchain behind the second-leading cryptocurrency by market capitalization, has recorded an applaudable surge in total value locked (TVL) by $7.79 billion in the past week. This record is significantly higher than that of other blockchain networks in the list of the top 15 blockchains.

Notably, this metric has yet to reflect on ETH’s price, which has failed to impress during the ongoing bull run.

In the past 7 days, #Etherum‘s TVL increased by $7.79B, #Tron‘s TVL increased by $900.23M, and #Solana‘s TVL increased by $618.4M.https://t.co/feLdHjjysN pic.twitter.com/VOyGY3HBhL

— Lookonchain (@lookonchain) December 9, 2024

According to Lookonchain’s record, Tron and Solana trailed Ethereum with a weekly TVL boost of $900.23 million and $618.4 million, respectively.

Ethereum’s TVL Uptrend

A surge in Ethereum’s TVL business indicates a boom in its decentralized finance (DeFi) ecosystem. On-chain data from the blockchain analytics platform DefiLlama shows that several DeFi protocols built on the L1 blockchain fueled the TVL uptrend.

Topping the list is Lido, a liquid staking protocol that exists on five blockchains, including Ethereum. The project’s TVL is above $38 billion, representing a 6.53% surge in the past week. Another is Aave, a decentralized lending protocol that allows users to lend and borrow crypto. Its TVL at the time of writing is $18.76 billion, representing an 8.6% increase in seven days.

EigenLayer, a restaking protocol, ranked third on Ethereum’s DeFi projects list. Its TVL is $17.74 billion, signaling a 7.33% uptrend in the past week. Other projects that partook in driving Ethereum’s TVL record include Ethena, Spark, Kelp DAO, Convex Finance, and Usual Money.

Will ETH’s Price Follow?

The ongoing bull run has seen most crypto assets on the list of top 10 cryptocurrencies unlock meteoric growth. However, ETH has yet to see such price volatility. Instead of recording a significant price surge, the second-leading crypto has struggled below the $4,000 price mark for many months.

The sluggish price movement has caused some ETH investors to sell portions of their holdings. Others have dumped their ETH stash for other cryptocurrencies like BTC.

It remains to be seen the effect the current TVL surge will have on ETH’s price. At the time of writing, it sold for $3,800, representing a 2.2% decrease in the past 24 hours and an 8.2% increase in the past week.