Ethereum is experiencing a significant rally, with its price hitting a key milestone of $4,000. Currently trading at $3,976.18, the cryptocurrency has seen a 3.96% increase in the last 24 hours and a 1.69% rise over the past week.
A 10.51% surge in 24-hour trading volume reflects strong interest from major traders in the market, signalling growing confidence in the asset.
Why is Ethereum Going Up?
The rally comes alongside a monumental rise in the popularity of Ethereum’s liquid restaking protocols. These protocols have witnessed extraordinary growth in total value locked (TVL) throughout 2024.
As per data from DeFi aggregator DefiLlama, the TVL in Ethereum liquid restaking protocols has skyrocketed by nearly 6,000% this year.Â
Also Read: VanEck Predicts Ethereum Blob Space Generating $1B in Fee & $SUI Exceeding $10 In 2025
On January 1, the total value locked stood at approximately $284 million. By December 15, this figure had surged to $17.26 billion, underscoring the massive demand for staked asset utility within the Ethereum ecosystem.
Liquid restaking has become a game-changer in Ethereum’s DeFi space. Allowing stakers to use their staked assets for additional yield-generating opportunities has created a robust avenue for capital efficiency. This surge in activity highlights the network’s growing role in reshaping the landscape of decentralised finance.
An Increase in TVL for ETH
The increase in Ethereum’s TVL also aligns with broader market trends. As institutions and retail investors alike explore the potential of staking, Ethereum remains a top choice, thanks to its status as a leading smart contract platform.
The sustained growth in its liquid restaking protocols suggests that the network is not only evolving technologically but also building stronger investor confidence.
As Ethereum hovers near $4,000, speculations arise about whether the asset could soon breach the $5,000 mark. This question hinges on multiple factors, including broader market sentiment, the adoption of Ethereum-based solutions, and the continuation of its DeFi growth.
While volatility is always a concern in the crypto space, Ethereum’s recent performance and innovation in staking mechanisms paint a promising picture.
The $5,000 milestone, while ambitious, doesn’t seem too far out of reach if current trends persist. With growing trading volumes, increasing institutional interest, and groundbreaking advancements in its DeFi ecosystem, Ethereum’s future looks brighter than ever.