The Setup#BNBATH900
ETH breaks record high at $4,946 ✅
But DeFi TVL stalls at $91B (vs $108B peak in Nov 2021).
In ETH terms, locked tokens fall to 21M, lowest since last bull cycle.
🔎 What’s Driving the Divergence?
Institutional inflows & ETFs: Assets in ETH products surged from $8B in Jan → $28B now.
Retail DeFi participation muted: DEX + perps volumes steady but not near past highs.
Layer 2 shift: Base ($4.7B TVL), Arbitrum, Optimism soaking up liquidity.
Capital efficiency: Liquid staking (Lido) concentrates liquidity → less raw TVL.$ETH
🗣️ Expert Take
> “Despite ETH reaching new highs, its TVL remains below past records due to efficiency gains, competing chains, and weak retail activity. A real TVL revival needs retail DeFi back, stronger Ethereum-native yields, and slower capital migration.” — Nick Ruck, LVRG Research
⚖️ Why It Matters
Last cycle: TVL = growth metric (DeFi Summer → ETH rally).
This cycle: ETH price = macro + institutions, not grassroots DeFi.
⚠️ Risk: ETH may be riding “thinner foundations” if on-chain use doesn’t catch up.
🔥 Bottom line:#BTCWhalesMoveToETH
ETH is pumping like a macro asset, not a DeFi engine. Bulls need retail DeFi revival to sustain momentum.