According to a report from 21milyon.com, Ethereum (ETH) is experiencing a continued decline, dropping below $3,000 following a 3% decrease in the last 24 hours. Currently, the second-largest cryptocurrency is trading at $2,914, reflecting a 13.34% decrease over the month. Despite this negative price movement, there seems to be no shortage of demand for the token.
Santiment’s Ethereum Report
Santiment, an on-chain analytics firm, has observed a significant increase in the number of new users joining the Ethereum network. On April 28 and 29, approximately 266.6 thousand new wallets were created, marking the largest two-day network expansion since October 2022. Network expansion is a key indicator of whether a cryptocurrency is gaining interest, and the influx of new users demonstrates confidence in ETH’s long-term potential, despite short-term fluctuations.
Investor Interest in ETH
Further analysis by Santiment reveals that individual users are also joining this trend. The analysis shows a significant increase in addresses holding between 0 and 0.1 units of ETH, even as prices fall. On the other hand, wallets holding more than 1 ETH have been selling, as indicated by the decrease in ETH reserves.
These findings indicate strong individual investor interest in ETH, and healthy entries from this segment could potentially contribute to a relief rally in the coming days. Many of these individual customers may have been attracted by the returns offered by ETH staking services.
Data from Glassnode shows that the total amount of ETH staked has risen to 44.24 million, accounting for 36% of ETH’s total circulating supply. Meanwhile, the supply of ETH on exchanges continues to decrease, currently standing at 12.79 million, which constitutes about 10% of the total circulating ETH cryptocurrencies.
Disclaimer: The information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
