Ethereum (ETH) is experiencing a downward trend, falling below $3,000 after a 3% decline in the past 24 hours, as reported by 21milyon.com. The current value of Ethereum, the second-largest cryptocurrency, is $2,914, reflecting a 13.34% decrease over the month. Despite this negative price movement, there is still significant demand for the token.
Santiment, an on-chain analytics firm, has observed a notable increase in the number of new users joining the Ethereum network. On April 28 and 29, approximately 266,600 new wallets were created, marking the largest expansion of the network in two days since October 2022. This expansion is a crucial indicator of growing interest in a cryptocurrency. The participation of new users demonstrates confidence in the long-term potential of ETH, disregarding short-term fluctuations.
A closer analysis by Santiment reveals that individual users are also partaking in this trend. The number of addresses holding between 0 and 0.1 ETH has significantly increased while prices have fallen. On the other hand, wallets holding more than 1 ETH have been selling, leading to a decrease in ETH reserves.
These findings indicate strong individual investor interest in ETH, and the influx of healthy entries from this segment could potentially contribute to a relief rally in the upcoming 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 ETH stake currently stands at 44.24 million, accounting for 36% of the total circulating supply of ETH. Meanwhile, the supply of ETH on exchanges continues to decrease, currently standing at 12.79 million, which represents about 10% of the total circulating ETH cryptocurrencies.
It is important to note that the information presented in this article does not constitute investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
