• Ethereum’s TVL has reached a 3-year peak at $90B, signaling confidence, but ETH’s price remains stagnant.
  • Institutional demand could boost ETH’s value, especially if spot Ethereum ETFs integrate staking.

Ethereum’s Total Value Locked (TVL) has surged to levels not seen since 2022, surpassing $90 billion in December 2024. Crypto News Flash previously highlighted how Qubetics, Ethereum, and Stellar are set to lead the crypto market in 2025.

This significant increase in TVL, which measures the value of assets deposited in Ethereum’s decentralized finance (DeFi) protocols, underscores growing confidence in the ecosystem.

Why Isn’t ETH Surging Alongside TVL?

Despite Ethereum’s dominance in DeFi, ETH’s price has struggled to maintain momentum. As of late December 2024, ETH was trading around $3,368, down from previous highs near $4,000. This disconnect between TVL growth and price performance has led to discussions about what’s holding ETH back.

In a recent tweet by IBC Group Official, they noted:

Ethereum just hit a massive milestone—its total value locked (TVL) is back at 21.8M ETH, the highest since 2022. But don’t get too hyped—ETH price hasn’t exactly followed suit. It’s down 21% since January, and fees are dropping hard.

ETHEREUM TVL AT 3-YEAR HIGH — CAN ETH BREAK $3K?

Ethereum just hit a massive milestone—its total value locked (TVL) is back at 21.8M ETH, the highest since 2022.

But don’t get too hyped—ETH price hasn’t exactly followed suit. It’s down 21% since January, and fees are dropping… pic.twitter.com/oro8HL9GBq

— IBC Group Official (@ibcgroupio) February 13, 2025

One key factor is network activity. While TVL has risen, transaction volume and fees have remained low. Historically, Ethereum’s transaction fees signaled network demand, but Layer 2 scaling solutions have reduced congestion and costs, lowering the fees that help sustain ETH’s value.

Broader Market Trends & Institutional Influence

Beyond Ethereum’s ecosystem, macroeconomic factors and market sentiment play a role. Regulatory developments, competition from other blockchains, and investor caution have influenced ETH’s price movement.

Additionally, institutional interest in Ethereum remains a key topic. Some analysts suggest that ETH could see stronger demand if spot Ethereum ETFs, currently under SEC review, integrate staking. The absence of staking rewards in these funds has reportedly kept institutional inflows lower than expected.

ETH Price Predictions: Where Could It Go Next?

Despite current challenges, some analysts remain bullish on Ethereum’s future . Crypto analyst ‘Mags’ predicts ETH could reach an all-time high of $7,297 by 2025, citing historical patterns and increasing institutional participation.

As of now, ETH is trading at $2,699.95, reflecting a 0.55% decrease in the past day but a 0.08% increase over the past week. See ETH price chart below.