Ethereum price remains shaky as network’s DeFi dominance dips by 50+%

Posted: 9 March 2022 2:49 pm

ETH's dropping TVL ratio is most likely due to its high transaction fee of around AUD$28 (US$20).

  • Utilisation of ETH-based NFTs, games and dApps has continued to dip over the past few months.
  • The Philippines government recently announced the launch of its very own CBDC pilot program called "Project CBDCPh".
  • Hardware wallet manufacturer Ledger has released a total of 10,000 limited edition NFT-focused cold storage units.

Ethereum, the world's second largest cryptocurrency by total market capitalisation, has continued to witness a lot of volatility over the past month, as is reflected by the fact that over the last 7-day stretch the altcoin has incurred losses of over -12%. At press time, ETH is trading at a price point of AUD$3,600.

Ethereum's continued poor performance seems to stem from the fact that the currency's transaction fees have continued to hover around a price range of around AUD$20–$28. As a result, a lot of individuals making use of various ETH-based dApps, blockchain-games and NFTs are continuing to find it difficult to utilise the ecosystem.

What's even more alarming is the fact that the Ethereum network's total value locked (TVL) dominance has declined by a whopping 50+% over the last few days, with data showing that the volume of assets locked within the system's native smart contracts have dipped to an all-time low in comparison to its closest rivals such as Terra, Polkadot, Solana, Cardano and Avalanche.

These undesirable developments may be emanating from the fact that Ethereum's long-awaited transition from a proof-of-work (PoW) framework to a proof-of-stake (PoS) one has once again faced delays.

How to buy Ethereum

Philippines set to release CBDC pilot

As a growing consortium of major financial players continue to adopt cryptocurrencies on a global level, a technological niche that has continued to pique the interest of many nations is that of central bank digital currencies (CBDCs). In this regard, a representative for the island nation of Philippines — in conjunction with the country's central banking authority Bangko Sentral ng Pilipinas (BSP) — announced the rollout of Project CBDCPh, the Asian nation's very own CBDC offering. On the subject, BSP Governor Benjamin Diokno, was quoted as saying:

"The project aims to build organisational capacity and hands-on knowledge of key aspects of CBDC that are relevant for a use case around addressing frictions in the national payment system."

According to Diokno, the program will help the government facilitate state-based cash assistance programs, as well as help provide many underprivileged sections of society with immediate monetary support.

Ledger announces NFT-centric hardware wallet offerings

One of the world's leading hardware wallet manufacturers, Ledger, revealed earlier this week that it was going to be releasing a set of limited-edition NFT-focused wallets — a la the Ledger Nano S Plus. In all, there will be a total of 10,000 devices that will be made available to the public at a cost price of AUD$110 (US$79) each.

The release will be facilitated in partnership with Ethereum-based Proof of Attendance Protocol (POAP). As a quick reminder, POAPs can be considered as being "digital memories" associated with various NFTs showcasing engagement and attendance.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Disclosure: The author owns a range of cryptocurrencies at the time of writing.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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