Ethereum on-chain analysis: DeFi interest continues to grow
Today Bitcoin Magazine will take a look at Ethereum (ETH) on-chain metrics, more specifically the total value associated with DeFi products and Uniswap trading.
The Total Value Locked (TVL) in DeFi products (in blue) has been rising steadily since the beginning of March 2020.
Overall, TVL has mirrored ETH’s price movement, both of which hit all-time highs on May 21.
However, while the ETH price has not yet hit a new all-time high, TVL has. The locked value broke its previous all-time high in late August and hit a new high on October 21 at $ 239 billion in DeFi products.
This shows that the ETH price has stagnated, but the interest in DeFi products has not diminished. The growth compared to the same period last year is even more impressive.
TVL DeFi Chart on Ethereum | The source: Glass knot
Trade on Uniswap
The number of transactions (transactions) on the Uniswap exchange shows a completely different picture. Uniswap is one of the largest DeFi exchanges and its transactions peaked in May when the ETH price hit an all-time high.
However, the reaction after the May-June decline was completely opposite to TVL’s.
The number of transactions continued to fall to an annual low in September, has since recovered somewhat, but at only around 100,000 is well below the high of 250,000 in May.
Number of transactions on Uniswap | The source: Glass knot
In addition, the number of wallet addresses with more than 32 ETH has increased since July.
This number is used as a criterion, as it is the minimum amount to become a validator for ETH 2.0.
Number of wallet addresses with more than 32 ETH | The source: Glass knot
This metric is more important in combination with the number of transactions in the ETH network.
The number of such transactions has declined since the all-time high in May and reached a deeper low in September – roughly mirroring the number of transactions on Uniswap, but at a slower pace.
This shows that ETH is mainly used for staking, being put in the ETH 2.0 pool or the DeFi sector, rather than for trading.