Crypto Drama: DeFi TVL Takes a Nosedive! 😱💸

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Oh dear, it seems the total value of cryptocurrencies locked (TVL) in decentralized finance (DeFi) protocols has decided to play hide and seek with our hopes and dreams, losing all its gains since Donald Trump strutted into the presidential spotlight in November 2024. 🎭

After the US election, DeFi TVL was riding high at a fabulous $138 billion on December 17, but by March 10, it had plummeted to a mere $92.6 billion. Talk about a dramatic plot twist! 📉

Solana is taking the heat as its memecoin fame fizzles out, while Ethereum is having its own existential crisis. Ether (ETH) just can’t seem to hit a new all-time high, even as Bitcoin (BTC) skyrocketed past $109,000 on January 20, the day Trump took office. Ethereum’s TVL has also taken a $30.6 billion hit from its cycle highs, according to the ever-reliable DefiLlama data. 😬

And let’s not forget Ether’s record high price of $4,787 from November 2021, which remains as elusive as a good hair day on a rainy Monday. Despite some positive industry developments, like spot exchange-traded funds (ETFs) launching in the US and Trump’s executive order for a strategic Bitcoin reserve, Ether is still stuck in the past. 🕰️

Ethereum’s $1.8 billion weekly net exchange outflow

In a shocking turn of events, nearly 800,000 ETH, worth about $1.8 billion, decided to leave exchanges in the week starting March 3. This resulted in the highest seven-day net outflow recorded since December 2022, according to the ever-watchful IntoTheBlock data. 🚪💨

These outflows are a bit of a head-scratcher, especially since Ether’s price took a 10% nosedive during this period, hitting a low of $2,007, per CoinGecko. Normally, exchange inflows scream “sell-off,” while outflows whisper “long-term holding” or “let’s go yield farming!” 🌾

“Despite the ongoing doom and gloom around Ether prices, this trend suggests many holders see current levels as a strategic buying opportunity,” IntoTheBlock chirped in a March 10 X post. Who knew crypto could be so optimistic? 🤷‍♀️

Before March 3, Ethereum was experiencing net exchange inflows daily, indicating that investors were selling during the downturn. Juan Pellicer, senior research analyst at IntoTheBlock, noted that ETH’s drop to $2,100 may have triggered a buying frenzy, leading investors to withdraw funds from exchanges. Talk about a rollercoaster ride! 🎢

Pectra upgrade meets own road bumps

Ethereum’s rollup-centric roadmap has been a mixed bag, reducing congestion and gas fees but also introducing liquidity fragmentation. It’s like trying to tidy up your room while simultaneously throwing a party. 🎉

The upcoming Pectra upgrade aims to fix this mess by enhancing layer-2 efficiency and interoperability. By doubling the number of blobs, it reduces transaction costs and helps consolidate liquidity. Plus, account abstraction allows smart contract wallets to function more seamlessly across Ethereum and layer-2 networks, making fund management a breeze. 🌬️

However, the Pectra upgrade rollout hit a snag on March 5 when it launched on the Sepolia testnet. Ethereum developer Marius van der Wijden reported errors on Geth nodes and empty blocks being mined due to a deposit contract triggering an incorrect event type. A fix has been deployed, but let’s hope it doesn’t require a miracle! 🙏

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2025-03-10 17:21