Ethereum TVL Exceeds Market Value for First Time, Signaling Undervaluation

The total value locked, or TVL, on the Ethereum network has exceeded Ethereum's market capitalization for the first time, Cointelegraph reported.

Leon Waidmann, head of risk research, said Ethereum's TVL currently stands at about $260 billion, topping the cryptocurrency's roughly $210 billion market value for the first time.

TVL measures the value of assets deposited in decentralized finance, or DeFi, protocols. A higher TVL is generally viewed as a sign of stronger network usage.

Ethereum also leads the real-world asset tokenization market. Data from an RWA-related data site shows Ethereum accounts for about 47% of the overall RWA market.

Waidmann said Ether's price still does not fully reflect those fundamentals despite the network's growth. As of 10:10 p.m. on July 11, Ether was trading at $1,798, up 0.26% from a day earlier, according to CoinMarketCap.

He added that Ether's relative valuation is now below levels seen during the 2022 bear market, which he said signals the token is undervalued.