What caused the Ethereum Classic's TVL to bounce back?

What caused the Ethereum Classic's TVL to bounce back?

written by John Murphy | March 20, 2023

Ethereum Classic ETC had a bullish week in terms of its price action but that was not the only thing that bounced back.

The Total Value Locked of Ethereum Classic also increased along with the price action. This measure reflects the level of activity taking place on a certain network. This indicated that more assets were added to the ecosystem. Which may seem to be a positive factor for the growth of ETC.

The TVL of ECT is at $348,980 right now which signifies a great improvement for the ecosystem.

What caused the Ethereum Classic's TVL to bounce back?

Despite the improvement, the TVL of Ethereum Classic still remains significantly lower than Ethereum’s $29.17 billion. The low TVL indicated the lesser adoption of the network or its use in DeFi. ETC most definitely falls behind in the DeFi adoption as compared to the highly adopted Ethereum.

HebeSwap is one of the major contributors to Ethereum Classic’s TVL. In fact, it accounts for most of its TVL.

HebeSwap is a Decentralized Exchange (DEX) that runs the Ethereum Classic network. HebeSwap increased the TVL of the network by 42.87%. This indicates more users are using the HebeSwap exchange to trade on Ethereum classic network. Not only that it also gained most of the DeFi project running on the ETC network.

The exchange also added a feature called APY pool, this feature rewards tokens to the users for providing liquidity to the exchange. This shows its commitment to improving the Ethereum classic network ecosystem.

The market activity of Ethereum Classic ETC

The ETC market witnessed an impressive rebound of up to 25% from its lowest point of the week to the highest. It also gained 40% from its monthly low trading at around $21.12 now.

Data from RSI Relative Strength Index clearly indicated a bullish signal as it went up by 50%. With a high-weighted sentiment metric, it is pretty obvious that the investors are optimistic about the ETC’s prospects.

Volatility metric of the network also experienced a pivot last week. However, it’s still unclear if the surge in volatility will be able to maintain its momentum in the days to come.

What caused the Ethereum Classic's TVL to bounce back?

In addition, on the positive side, the NFT trade volume has also surged on the network, which indicates an increase in its demand. In the end, the investors do need to keep in mind that Ethereum Classic Network development activity has shown signs of weakness by the end of the week.