Ethereum price remains shaky as network’s DeFi dominance dips by +50%

Posted: 8 March 2022 10:49 pm
ETH 03-09 1800x1000

Ethereum’s dropping total value locked ratio is most likely due to its high transaction fee of around $20.

  • Utilization of ETH-based nonfungible tokens, games and dApps has continued to dip over the past few months.
  • The Philippines government recently announced the launch of a pilot program for a central bank digital currency (CBDC) called “Project CBDCPh.”
  • Hardware wallet manufacturer Ledger has released a total of 10,000 limited edition NFT-focused cold storage units.

Ethereum (ETH) has witnessed a lot of volatility over the past month. Over the last seven-day stretch, the altcoin has incurred losses of over -12%. At press time, ETH is trading at $2,737.

Ethereum’s continued poor performance seems to stem from the currency’s high transaction fees of around $20. As a result, many individuals making use of various ETH-based dApps, blockchain games and NFTs find it difficult to utilize the ecosystem.

What’s even more alarming is that the Ethereum network’s total value locked (TVL) dominance has declined by a whopping +50% over the last few days. Data shows that the volume of assets locked within the system’s native smart contracts has dipped to an all-time low in comparison to its closest rivals, such as Terra, Polkadot, Solana, Cardano and Avalanche.

These undesirable developments may be emanating from the fact that Ethereum’s long-awaited transition from a proof-of-work (PoW) framework to a proof-of-stake (PoS) one has again faced delays.

How to buy Ethereum

Philippines set to release CBDC pilot

As a growing consortium of major financial players continues to adopt cryptocurrencies on a global level, a technological niche that has continued to pique the interest of many nations is that of central bank digital currencies (CBDCs). A representative for the island nation of the Philippines — in conjunction with the country’s central banking authority Bangko Sentral ng Pilipinas (BSP) — announced the rollout of Project CBDCPh, the Asian nation’s own CBDC offering. BSP Governor Benjamin Diokno stated:

“The project aims to build organizational capacity and hands-on knowledge of key aspects of CBDC that are relevant for a use case around addressing frictions in the national payment system.”

According to Diokno, the program will help the government facilitate state-based cash assistance programs, as well as help provide many underprivileged sections of society with immediate monetary support.

Ledger announces NFT-centric hardware wallet offerings

One of the world’s leading hardware wallet manufacturers, Ledger, revealed earlier this week that it was going to be releasing a set of limited-edition NFT-focused wallets — a la the Ledger Nano S Plus. In all, there will be a total of 10,000 devices made available to the public for $79 each.

The release will be facilitated in partnership with Ethereum-based Proof of Attendance Protocol (POAP). POAPs can be considered as “digital memories” associated with various NFTs showcasing engagement and attendance.

Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Disclosure: The author owns a range of cryptocurrencies at the time of writing.

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