The Ethereum network has seen a surge in demand from both whales and retail investors, but the volumes remain low. This is despite the Ethereum 2.0 Total Value Locked (TVL) reaching a new all-time high.

According to data from DeFi Pulse, the Ethereum 2.0 TVL has reached a new all-time high of $3.3 billion. This is a significant increase from the previous all-time high of $2.8 billion, which was set in February 2021.

However, despite the surge in Ethereum 2.0 TVL, the demand from whales and retail investors remains low. According to data from Glassnode, the number of Ethereum whales (addresses with more than 10,000 ETH) has decreased by 8.5% since the beginning of 2021.

The number of Ethereum addresses holding more than 1,000 ETH has also decreased by 6.5% since the beginning of 2021. This suggests that the demand from whales is waning, and that the demand from retail investors is also low.

The low demand from whales and retail investors could be due to a number of factors. Firstly, the Ethereum network is still in the process of transitioning to Ethereum 2.0. This transition is expected to take several years, and it is likely that investors are waiting for the transition to be completed before investing in Ethereum.

Secondly, the high gas fees on the Ethereum network are also likely to be deterring investors. The average gas fee on the Ethereum network is currently around $20, which is significantly higher than the average gas fee on other networks such as Bitcoin and Binance Smart Chain.

Finally, the high volatility of Ethereum could also be deterring investors. Ethereum has seen significant price swings over the past few months, and this could be causing investors to stay away from the network.

Source: https://ambcrypto.com/ethereum-sees-some-whale-and-retail-demand-but-heres-the-issue/