Ethereum Although it is showing some upward momentum again, it is still below the $3,000 level. Despite the price volatility over the past few weeks, the specific structures and narratives driving the value of major altcoins remain strong, increasing the potential for significant upside.
Rising TVL strengthens ETH price base
In the dynamic cryptocurrency situation, Ethereum Total Value Lock (TVL) It continues to emerge as a subtle but powerful anchor for the long-term price stability of altcoins and the growth of their evolving ecosystem. Over the past few years, this narrative has held strong and driven the price of ETH higher.
While short-term price movements will still fluctuate depending on overall market sentiment, ETH’s core value is strengthened by consistent capital concentration across the network. Mr. Milkroad, a cryptocurrency and macro researcher, said This means that altcoin prices increasingly track the amount of capital present on the network.
This development suggests that ETH’s valuation is becoming more structurally backed and less speculative. As a result, network is maturing to a stage where the price floor is primarily determined by usage rather than hype.
According to experts, if TVL expands significantly, the network economy will also experience significant growth at the same time. This means deeper liquidity, a stronger collateral base, and more durable demand for block space and network security.
Milk Road emphasized the following non-speculative capital: stable coingovernment bonds, real world assets (RWA), and on-chain asset management may be the main drivers of TVL rise. Meanwhile, the floor for ETH is rising outside of the bull market as capital inflows from these regions continue to grow.
But entering a bear market seems more difficult. It is worth noting that when this happens, the resilience of the broader ecosystem is strengthened and the long-term valuation anchor is also improved.
Why you shouldn’t be an ETH bear
As a result of comparing the value and size of ETH, Ethereum ecosystem Charts, Data Analyst and Researcher Emperor Osmo; I declare Despite the current bearish state of the market, being bearish on ETH currently is not an ideal choice.
Osmo’s bold statement: big change With Ethereum network fees. As blockspace becomes commoditized, experts highlighted that ETH has moved from 90% of fees generated by layer 1 to 2%. Despite this massive change, the network continues to dominate in TVL and ecosystem growth.
This chart shows that ETH has a transaction value of $353.2 billion, while the ecosystem built on the network has a transaction value of $330 billion, which corresponds to a 1.1x premium. According to Osmo, this trend assumes no growth, no value capture, and no inflow of liquidity.
At the time of writing, Ethereum price was trading around $3,000, up nearly 1% in the past 24 hours. Its trading volume has been trending in the opposite direction to ETH price, which has fallen more than 13% in the past day.
Featured image from iStock, chart from Tradingview.com
