- Ethereum has recently witnessed its most significant two-day network growth in nearly two years.
- The network growth comes despite recent price struggles.
- Macroeconomic conditions and an ongoing SEC investigation continue to weigh on the asset’s price.
Despite recent ETH price struggles, things are not looking all bad for the Ethereum network. Recent data suggests that at the start of the week, the network saw its highest influx of new accounts in nearly two years.
Could this network growth be the catalyst ETH needs?
Ethereum Network Gains Over 260K New Wallets
Like most crypto assets, ETH experienced a steep decline this week amid jitters over the Federal Reserve’s interest rate decision, which was announced on Wednesday, May 1. Despite this market uncertainty, Santiment Feed data has revealed that thousands were still jumping into the Ethereum ecosystem at a record rate.
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On Wednesday, Santiment Feed disclosed that over 260,000 new Ethereum wallets were created between April 28 and April 29, the highest two-day network growth since October 8 and October 9, 2022.
While the reason for the recent network growth spike is unclear, over the weekend, the Ethereum community saw some excitement as the Depository Trust and Clearing Corporation (DTCC) stirred hopes of spot Ethereum ETF approvals by listing Franklin Templeton’s planned offering on its website.
Regardless of the catalyst, the network growth metric has sparked optimism amongst some Ethereum users. This optimism comes as network growth is typically bullish for underlying crypto assets. Still, uncertainties remain.
Overarching Concerns
Significant growth in the number of addresses in a network is typically viewed as a sign of strong network fundamentals, highlighting a potential for increased capital inflows.
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However, the impact of this network growth is not always immediately reflected in price, particularly when investors have overarching concerns. At present, these concerns for Ethereum include continued high interest rates in the U.S. and the SEC’s unclear position on the asset’s classification.
At the time of writing, ETH continues to trade below the psychologically important $3,000 price level at $2,991, per CoinMarketCap data.
On the Flipside
- Despite recent price struggles, Ethereum is still up over 30% year-to-date (YTD) from an opening price of around $2,282.
Why This Matters
Ethereum is the second largest crypto asset in terms of market capitalization. While the recent network growth may not translate to immediate price gains, it suggests continued interest in the ecosystem.
Read this for more on ETH:
SEC to OK Leveraged ETH ETFs… While Probing Security Status?
See how Polygon (MATIC) is reacting to the recent market downturn:
Polygon (MATIC) Plunges in BTC-Led Flush: Can It Hold Support?
