Ethereum [ETH] fell 18% in less than a week after bouncing from the $2,200 support level. This happened after BTC took another shock and dropped to $30,000. The entire crypto market has gone into a frenzy in recent days with Luna and UST headliners on the fallen market situation.

A particularly bearish sentiment has engulfed ETH in recent days with volume falling nearly 25% in the past 24 hours. The largest altcoin by market cap also had stats suggesting a period of patience from the ETH community.

Daily currency inflows tapped at $170 million, indicating a disrupted market for investors. Another interesting development saw the total ETH TVL in DeFi take a huge hit, according to DefiLlama. It fell by a whopping $11 billion on May 9 and May 10 due to diminished market interest in DeFi and crypto as a whole following recent setbacks.

Source: Stat Alert

In addition, the number of lost addresses reached a new high on the ETH network at press time. 27.4 million addresses were the highest number of addresses that suffered loss. This significant number was registered after May 2020.

Source: Glassnode

Transaction volumes on the network have also risen sharply in recent days. In addition, at the time of writing, transaction volumes hit a three-month high of 93,188 ETH, while the previous record was set at 93,088 ETH on May 10.

Source: Glassnode

What do the experts say…

As the atmosphere of “extreme fear” looms in global markets, analysts remain confident in the recovery of cryptocurrencies.

Edward Moya, senior market analyst at the currency brokerage firm Oanda, stated:

“If the $30,000 level breaks, that could trigger a flash crash environment as multiple whales unload. I tweeted this on April 17, 2022: ‘I’m getting 2021 April-May vibes, meaning potentially bearish until July. to look [include] price action, inability to break out effectively, NFTs go off.

On the other hand, Tyrone Ross, CEO of Onramp Invest, a crypto asset platform for financial advisors and companies, said,

“If something goes on sale and you like it, you should buy it. I think we are not at mass adoption yet, but we are at mass adoption. If your time horizon is 10 years, I think now is a good time to buy it.”

While some analysts feared a crash before July 2022, others are trying to fill in the gaps. It is certainly a wait and see market situation with macroeconomic controls largely at play here.

This post Ethereum’s TVL Takes Huge Hit, But Here’s a Sign of Hope

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