thereum’s native token Ether (ETH) has declined by more than 35% against Bitcoin (BTC) since December 2021, with a potential to decline further in the coming months.
ETH/BTC dynamics
The ETH/BTC pair’s bullish trends typically suggest an increasing risk appetite among crypto traders, where speculation is more focused on Ether’s future valuations versus keeping their capital long-term in BTC.
Conversely, a bearish ETH/BTC cycle is typically accompanied by a plunge in altcoins and ETH’s decline in market share. As a result, traders seek safety in BTC, showcasing their risk-off sentiment within the crypto industry.
Ethereum TVL wipe-out
Interest in the Ethereum blockchain soared during the pandemic as developers started turning to it to create a wave of so-called decentralized finance (DeFi) projects, including peer-to-peer exchange and lending platforms.
That resulted in a boom in the total value locked (TVL) inside the Ethereum blockchain ecosystem, rising from $465 million in March 2020 to as high as $159 billion in November 2021, up more than 34,000%, according to data from DefiLlama.
