Key Points
- Ethereum has witnessed its largest 2-day network expansion since October 2022.
- Despite a price drop, the demand for Ethereum remains high, with significant increase in addresses holding between 0 and 0.1 units.
Despite the recent drop in the price of Ethereum (ETH), the network has seen a significant expansion.
Data from CoinMarketCap showed that Ethereum’s price fell below $3,000 in the last 24 hours, reflecting a 13.34% discount over the month.
Unfazed Demand and Network Expansion
Despite the negative price action, the demand for Ethereum did not diminish.
Santiment, an on-chain analytics firm, reported a surge in new users joining the Ethereum network. Approximately 266.6k new wallets were created on the 28th and 29th of April, marking the largest 2-day network expansion since October 2022.
Network expansion is a crucial metric for determining a cryptocurrency’s traction. The influx of new users suggests confidence in Ethereum’s long-term potential, despite short-term price fluctuations.
Retail Interest and Staking
An analysis of Santiment’s data revealed that retail users were increasingly investing in Ethereum. The number of addresses holding between 0 and 0.1 units of Ethereum grew significantly, even as prices fell.
Meanwhile, holders of more than 1 Ethereum were selling off, as indicated by a decrease in their Ethereum reserves.
These findings suggest a strong retail interest in Ethereum. Healthy inflows from this segment could potentially trigger a relief rally in the coming days.
Retail customers may be attracted to Ethereum due to the yields offered by Ethereum staking services.
The total Ethereum staked has reached 44.24 million, accounting for 36% of Ethereum’s total circulating supply.
Concurrently, the supply of Ethereum on exchanges has been decreasing, currently standing at 12.79 million, which is about 10% of the total Ethereum coins in circulation.
