Ethereum Demand Rises Despite Price Drop: New Wallets Surge
The Essentials at a Glance
Despite a recent drop in the price of Ethereum (ETH), demand for the cryptocurrency is on the rise. New data suggests that retail investors, in particular, are increasingly demanding ETH, indicating ongoing confidence in Ethereum’s long-term potential. This post examines the factors behind this trend and what it means for investors.
Why is demand for Ethereum increasing?
Ethereum recently experienced a significant price drop, with the value falling below the $3,000 mark. Despite this decline, the Ethereum network recorded a notable increase in new users. According to data from on-chain analysis firm Santiment, approximately 266,600 new wallets were created on April 28 and 29 – the largest increase since October 2022. This suggests that investors continue to have confidence in ETH’s long-term development.
Retail Investors Show Strong Interest
A closer look at the data shows that retail investors, in particular, are behind the increase in demand. The number of wallets holding between 0 and 0.1 ETH has increased, while larger investors have reduced their holdings. This could suggest that retail investors see the price declines as a buying opportunity, while larger investors are taking profits or diversifying their positions.
Staking as a Possible Incentive
Another factor that could be driving retail investor interest in ETH is the potential for returns through staking. With Ethereum’s transition to a proof-of-stake model, investors can earn returns by staking their ETH tokens. The total amount of staked ETH recently reached 44.24 million, representing 36% of the total circulating supply. At the same time, the amount of ETH available on exchanges continues to decrease, potentially signaling a tightening of supply and possibly higher prices in the future.
Our Assessment
The recent data clearly shows that despite short-term price fluctuations, interest in Ethereum remains strong, especially among retail investors. This ongoing confidence, coupled with the potential for staking returns, could provide Ethereum with a solid foundation in the coming months. However, investors should always keep an eye on the volatility of the crypto market and diversify their investments accordingly.
Sources: Santiment, Glassnode
The 3 best crypto casinos
| Wagering requirements | 35x bonus |
| 35x free spins winnings | |
| Minimum deposit | €20 |
| Maximum bet | €5 |
| Bonus validity | 30 days to claim |
| 14 days to wager / 7 days for free spins |
- There is no maximum bonus amount.
- 10 Free Spins per day over ten (10) days on Gates of Olympus or Book of Ra Deluxe.
| Wagering requirements | 40x bonus |
| 40x free spins winnings | |
| Minimum deposit | 0.0005 BTC |
| Maximum bet | 0.00004 BTC |
| Bonus validity | 30 days after registration |
| 14 days (1st), 7 days (2nd), 1 day (3rd) |
- To get the bonus, enter the bonus code before the deposit.
- Minimum deposit: 0,07 BCH • 0,4 LTC • 233 DOG • 45 XRP • 0,01 ETH • 20 USDT • 69 ADA • 0,05 BNB • 184 TRX • 20 USDC.
- Maximum bet: 0.007 BCH • 0.0009 ETH • 0.04 LTC • 23 DOGE • 2 USDT • 4 XRP • 18 TRX • 7 ADA • 0.005 BNB • 2 USDC • 2 EUR • 2 USD.
- Free spins are provided in batches of 25 per day.
- Free spins are credited on the Gamebeat slots: Max Miner (1st), Book of Elixir (2nd) and Odin’s Tree (3rd).
| Wagering requirements | 40x bonus |
| Minimum deposit | 0,1 mBTC |
| Maximum bet | $5 per spin |
| Bonus validity | 7 days to wager |
- There is no cap on winnings or withdrawals.
Advertising transparency