According to the expert, if the TVL expands meaningfully, the network’s economy simultaneously sees noticeable growth. This implies deeper liquidity, stronger collateral base, and more durable demand for block space and the network’s security.
However, it appears to be more difficult to break into bear markets. It is worth noting that the broader ecosystem’s resilience is strengthened when this occurs, and also improves the long-term valuation anchor.
Why You Shouldn’t Be An ETH BearThe chart shows that ETH trades are at $353.2 billion while the ecosystem built on top of the network trades at $330 billion, representing a 1.1x premium. According to Osmo, this trend makes the assumption that there is no growth, no value capture, and no liquidity inflows.
At the time of writing, the Ethereum price was trading near the $3,000 mark, after recording a nearly 1% increase over the last 24 hours. Its trading volume is moving in the opposite direction to ETH’s price, dropping by more than 13% in the past day.
