Crypto News

Ethereum Sees Network Growth Amid Market Volatility

Over the weekend, Ethereum experienced a notable rebound, surpassing the $3,200 mark and showcasing significant network expansion.

A staggering 196.71K new addresses were generated on the Ethereum network on May 4, 2024, marking the largest single-day surge in address creation since October 8, 2022. 

Despite the current price dipping below $3,100, the influx of new addresses signals optimism among investors and is interpreted as a positive indicator for Ethereum’s future trajectory.

Meanwhile, Coinshares reported that digital asset investment products faced outflows for the fourth consecutive week, totaling $251 million, with $156 million in outflows recorded last week. 

However, Ethereum bucked this trend, breaking a seven-week streak of outflows by recording an inflow of $30 million in the previous week. This influx of capital into Ethereum investment products underscores renewed interest and confidence in the cryptocurrency.

Ethereum ETF Regulatory Outlook To Monitor 

On the regulatory front, the U.S. Securities and Exchange Commission (SEC) has delayed its decision regarding the next steps for the Invesco Galaxy Ethereum SPOT ETF. The new deadline for this decision is now set for July 5, 2024. 

This postponement follows a series of deadline extensions for other spot Ethereum ETF proposals, including those from Grayscale, Franklin Templeton, VanEck, and BlackRock. The SEC’s cautious approach to approving these ETFs reflects the regulatory scrutiny surrounding cryptocurrency investment vehicles.

Amid market volatility and regulatory developments, Ethereum’s resilience and network growth stand out as key indicators of its enduring appeal and potential for long-term growth. 

As the cryptocurrency landscape continues to evolve, market participants closely monitor these developments for insights into Ethereum’s future trajectory and its impact on the broader digital asset market.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: nexusplexus/123RF // Image Effects by Colorcinch

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