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.
Source Fool.com
