Despite the big win with the Shapella hardfork - a major step forward for Ethereum - April was a bit of a rollercoaster when it came to price action. We saw trading volume take a dip, dropping by 15% compared to the month before. This slowdown in activity points to folks in the market playing it a bit safer when it comes to future financial ups and downs.
One of the main things keeping the market liquid is the growth of the stablecoin supply, which has been on the downswing since the Terra / Luna ecosystem took a hit back in May 2022. When it comes to liquidity, it's a bit of a domino effect – less liquidity leads to less liquidity. Right now, the market's in a kind of every-player-for-themselves state.
But hey, it's not all doom and gloom. There's always some action happening in the market, making it a bit like a game of musical chairs with a soundtrack that never stops. So, for those participating, keep your eyes on the prize and place your bets on the future of finance!
Total Crypto Market Cap: $1.210T (-2.10%)
DeFi TVL: $48.6B (-3.88%)
Stablecoins: $130.42B (-1.17%)
On April 12, the much-awaited Shanghai update finally went live, bringing a number of Ethereum Improvement Proposals (EIPs) to life, with EIP-4895: Beacon chain push withdrawals as operations taking center stage. Since the Beacon Chain launched in December 2020, more than two years have passed. The successful completion of Ethereum's recent hard fork, a significant milestone in the evolution of the Ethereum blockchain, has granted stakers a withdrawal button. This pivotal development offers liquidity on previously inaccessible consensus layer rewards and their initial 32 Ether node collateral. Around 15.4% of the ETH in circulation at the time of the Shanghai deployment, or more than 18 million ETH, were held in the Beacon Chain Staking contract.
Months before leading up to this monumental event, there were concerns within the Ethereum community that the hard fork could lead to substantial withdrawals, which could then trigger a sudden release of sell pressure from the Beacon Chain, potentially destabilising the market. However, the actual outcome was overwhelmingly positive: the exit queue size and composition was healthy with an increasing net validator count, and a robust liquid-staking derivatives (LSD) market. This positive reality testifies to the resilience and adaptability of the Ethereum network and its community.