ETH - Ethereum's 2023 Bull Run: Why the Best Is Yet to Come
Through the first 30 days of the year, Ethereum (CRYPTO: ETH) is up a surprising 37.53%, and now trades close to $1,700. Heading into the year, though, many traders expected Ethereum to consolidate its gains after The Merge and trade sideways in early 2023. Some even thought Ethereum might drop below $1,000. As a result, many investors are now asking: Is Ethereum's 2023 bull run sustainable?
The answer to that question can be found using one single metric: total value locked (TVL). This metric is useful as a shorthand way of tracking how much activity is happening on a blockchain. Generally speaking, the higher the number, the better it is for a blockchain. Let's take a deep dive into this metric and see what it tells us about Ethereum's future prospects.
Total value locked, as might be guessed by its name, refers to how much of a cryptocurrency is "locked" on a blockchain. There are various ways of "locking" your cryptocurrency, such as by choosing to participate in a crypto staking program. With staking, you agree to "lock up" your crypto to earn rewards for a certain amount of time, during which you can not trade it. Thus, blockchains that have successful staking programs also typically rank very high when it comes to total value locked.
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Ethereum's 2023 Bull Run: Why the Best Is Yet to Come