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DEX TVL rebounded to a peak of 60%, ETH price is similar but there is a difference in on-chain activity.
According to the published chart from 【币界】, the current TVL trend of a certain DEX is nearing the peak level of 60%. Since the current ETH price is close to the price in 2021, some insights can still be gleaned from the data, as well as where the market might head in the future.
On the dex, most on-chain native assets are traded against ETH. The year 2021 was a period of great prosperity for on-chain applications, with a wave of asset issuance bringing a large number of ETH trading pairs, which is clearly different from this cycle.
Although the ETH price has returned to 2021 levels, the market is clearly not driven by on-chain adoption. In this cycle, activities such as asset issuance and liquidity creation on-chain have significantly declined, which is indirectly verified by the TVL data.
The price increase during this cycle is more influenced by external factors (macro, ETFs, policies, etc.). With the strategic reserve established by DAT company as the main force, if the next step can promote funds to return to the chain and carry out a lot of application innovations based on the current foundation, the driving force for the entire market's advancement will become more diversified, and the market is likely to take a step up, which is probably the key factor in how high the market can go in the future.