Ethereum (ETH) has faced a downward trajectory, breaching the $3,000 mark within the past 24 hours with a 3% decline, according to data from CoinMarketCap. As of press time, the second-largest cryptocurrency was valued at $2,914, marking a significant 13.34% decrease over the course of the month.
Despite the negative price movement, investor appetite for Ethereum remains robust.
Santiment, an on-chain analytics firm, has reported a notable surge in new users joining the Ethereum network. Between April 28 and 29, approximately 266.6k new wallets were created, signifying the most substantial two-day network expansion since October 2022.
Expansion of the network is a crucial indicator for assessing the traction of a cryptocurrency. The influx of new users suggests a steadfast confidence in Ethereum’s long-term viability, disregarding short-term fluctuations.
Further examination reveals a surge in retail investors entering the Ethereum market. According to analysis by AMBCrypto based on Santiment’s data, addresses holding between 0 and 0.1 units of ETH increased significantly during the price decline.
Interestingly, cohorts holding larger amounts of ETH, specifically more than 1 ETH, were observed selling off their holdings, leading to a decrease in their ETH reserves.
These findings underscore the strong retail interest in Ethereum, with healthy inflows from this segment potentially fueling a recovery rally in the near future.
A significant portion of retail investors acquiring ETH may be enticed by the yields offered through ETH staking services. Data from Glassnode, as highlighted by AMBCrypto, indicates that the total amount of ETH staked has surged to 44.24 million, constituting 36% of Ethereum’s total circulating supply.
Simultaneously, the supply of ETH on exchanges has dwindled, dropping to 12.79 million at the time of reporting, equivalent to approximately 10% of the total ETH coins in circulation.
