The price of Ethereum (ETH) has plummeted below the psychological $2,000 level, sparking concerns among investors and traders.
Amid the ongoing price downturn, market data platform Messari released Ethereum’s Q4 2024 report, which showed the network’s key achievements.
Messari report reveals growth in the Ethereum ecosystem despite the dwindling prices. This dynamic has, therefore, raised discussions about an imminent ETH price breakout.
Performance in Q4, 2024
The latest Messari report provides insights on Ethereum’s growth in the fourth quarter (Q4) of 2024.
The report paints an exciting picture of Ethereum’s continued growth.
Notably, Total Value Locked (TVL) on Ethereum surged 121.6% Year over Year (YoY) to $66.3 billion.
Meanwhile, the TVL increased 36% compared to Q3 2024, demonstrating a robust expansion in the ecosystem.
Ethereum Layer-2 (L2) solutions were not left out of the surge. In Q4, Ethereum L2 TVL spiked 18.8% Quarter-over-Quarter (QoQ).
Essentially, a surge in an asset’s TVL indicates increasing user trust and adoption of the platform.
It is also considered a positive sign for the project’s health and potential for growth.
Thus, it suggests users are actively engaged with Ethereum’s features, such as staking and lending, in Q4 2024.
The blockchain also excelled in institutional adoption in Q4 2024. According to the Messari report, Ethereum Exchange-Traded Funds (ETFs) rose 63.6% QoQ.
This surge highlights investors’ confidence in Ethereum as a legitimate asset.
Furthermore, Ethereum stablecoins hit approximately $106 billion, rising 65.6% YoY.
However, the value of staked Ethereum plummeted QoQ for the first time since the launch of Beacon Chain.
Overall, the Messari report underlines the importance of strategic investment and community engagement in crypto.
Ethereum Price Drops Below $2,000
Ethereum price has plummeted drastically following the latest market sell-off.
On Monday, Ethereum experienced its largest weekly exchange outflow since December 2022, with $1.8 billion in withdrawals.
While top cryptocurrencies like Bitcoin (BTC) are gaining momentum, ETH is still below key levels.
As of this writing, ETH price was trading at $1,891, down 1.54% and 15.48% over the past day and week, respectively.
The daily trading volume decreased over 29% to $26.71 billion after a noteworthy uptick on the earlier day.
This could indicate that while investors’ interest in the coin is waning at this point, the market remains undecided.
Still, market analyst Ali Martinez cautioned ETH is breaking below a critical trendline.
The analyst thinks the price of ETH will drop to as low as $1,250 if selling pressure continues.
Pectra Finalizes on Holesky, Here’s the Implication
Across the ecosystem, Ethereum developers are pushing forward with Pectra upgrade testing as Holesky’s downtime ends.
Holesky, an Ethereum testnet, has regained finality after nearly two weeks of instability.
The testnet went into a non-finalization state after a misconfiguration impacted client software components.
Developers finally rectified the issues after weeks, marking an important step towards the successful implementation of the Pectra upgrade.
EthPandaOps, a group of Ethereum developers, confirmed that Holesky was finalized at Epoch 119090.
The network reached this milestone after more than two-thirds of the validators participated, stabilizing the network.
With Holesky now operational, the developers confirmed that validators could resume Pectra testing on Holesky.
Pectra is all about improving Ethereum’s functionality. The upgrade combines eight major Ethereum Improvement Proposals (EIPs).
By adding new features amid key changes to the blockchain, it promises to improve the network’s speed, efficiency, and scalability.
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