Ethereum: The rush of crypto investors continues despite the price drop
As the price of Ethereum continues its decline, dipping below the $3,000 mark, investors’ interest in the second-largest crypto remains strong. What are the factors that attract investors to ETH despite the price drop?
Ethereum falls, but investors keep flowing in
Despite a 3% loss in 24 hours and a drop below $3,000, the Ethereum network exhibits an unprecedented dynamic. According to Santiment, the 28th and 29th of April saw the creation of 266.6 million new wallets, setting a record since October 2022.
This massive influx of new users reflects a strong confidence in the long-term potential of ETH, beyond short-term volatility. “The expansion of the network is a key indicator of crypto adoption,” emphasizes John Smith, an analyst at Santiment.
An in-depth analysis of Santiment data shows that retail investors have particularly taken advantage of the price correction to enter the market. Addresses holding between 0 and 0.1 ETH have increased significantly, while those with more than 1 ETH have scaled back their positions.
This trend indicates a keen interest from individuals in ETH, whose capital inflows could support a short-term rebound. Many of these new investors are likely attracted by the returns of ETH staking.
Staking, an attractive yield in bearish times
The rise of staking on Ethereum entices more and more investors who seek to stake their ETH to generate attractive returns. According to Glassnode data, the total ETH staked has reached 44.24 million, representing 36% of the circulating supply.
Meanwhile, the ETH supply on exchanges continues to decline, to 12.79 million tokens, about 10% of the total. “Many prefer to stake their ETH to earn returns rather than leave them lying dormant on exchanges,” analyzes Wilson.
The Ethereum is going through a rough patch, but its network has never seemed as robust. The massive arrival of new users enticed by the yields of staking heralds a bright future for ETH, despite market fluctuations.
