Absolute Record For Ethereum... And Yet, Is ETH In Danger?

The Ethereum ecosystem is currently experiencing significant growth in its TVL (Total Value Locked), reaching unprecedented levels since 2022. On February 11, 2025, Ethereum’s TVL reached 21.8 million ETH, marking its highest level since October 2022, representing an 11% increase compared to the previous month. A dynamic that unfortunately may not benefit ETH.

The Ethereum TVL explodes to 21.8 million!

The Ethereum TVL explodes to 21.8 million ETH, a record since 2022. This progress is partly attributed to the ascendance of Layer 2 solutions on Ethereum, which have exceeded $51.5 billion in TVL, representing an annual growth of 205%! Platforms such as Arbitrum One and Base have played a key role in this expansion. Arbitrum One alone holds over $18.3 billion in TVL, accounting for 35% of the total L2 ecosystem.

However, despite this increase in TVL, transaction fees on the Ethereum network have decreased. At the beginning of this week, on February 10, Ethereum generated $8.1 million in transaction fees, a decline of 72% compared to the previous two weeks. This decrease is mainly due to a 37% drop in monthly transaction volume.

Furthermore, the price of ETH has decreased by 21% since January 31, struggling to maintain levels above $2,800. This performance is partly influenced by a 12% decrease in total cryptocurrency market capitalization during this period.

The repercussions on ETH

Analysts believe that, despite the growth of TVL, ETH may not immediately benefit from this dynamic due to the decline in transaction fees and overall network activity.

For the price of ETH to exceed $3,000, the potential approval of integrating staking within the Ethereum ETFs currently under review by the SEC could serve as a catalyst. Some analysts suggest that the demand for these ETFs has been limited due to the absence of yield associated with staking, which could deter institutional investments.

Although Ethereum’s TVL is reaching new heights, the impact on ETH’s price remains uncertain. Investors are closely monitoring regulatory developments and the evolution of network activity to assess the future prospects of Ethereum.