- Investors eventually turned to Ethereum investment products.
- As staking withdrawals reduced, so did ETH’s price.
After a long period of low activity, Ethereum [ETH] finally experienced a substantial inflow of investments. According to data from CoinShares, Ethereum’s investment products saw an inflow of $17 million in the week, which ended on 21 April.
How much are 1,10,100 ETHs worth today?
This was the highest weekly inflow in almost two months after the altcoin struggled to hit the million-dollar market on several occasions. This inflow is a strong indicator of renewed interest in Ethereum, as investors seek exposure to the cryptocurrency market.
Source: CoinShares
Over them all
One widespread reason why ETH lacked investors’ contribution was because of the Shapella upgrade, whose objective was to enable withdrawals for validators.
Despite the success of the upgrade, investors remained skeptical about bestowing liquidity into investment products linked with the asset in the week before the last.
However, the fears around possible selling pressure seem to have dwindled. This could have influenced the decision of investors to return attention to the altcoin. But CoinShares noted that the majority of the inflow emerged from Europe.
According to Nansen, ETH sent to the Beacon deposit contract had outweighed withdrawals. As of 24 April, deposits were 63,009 while principal withdrawals were lower at 61,312.
Although withdrawals were evident last week, the overall sentiment since the upgrade appealed more to deposits, far better than the intent to sell.
Source: Nansen
Here’s where it gets interesting. For seven hours before press time, no withdrawals have been scheduled as validators seem to have resolved to earn more rewards, with over 18 million ETH already staked. Definitely, a situation like this would have helped regain investors’ confidence.
Deficiency of newcomers as other altcoins…
Although staked ETH deposits may have increased, the same cannot be said of its network growth. The network growth describes the number of new addresses being created on a network daily.
At the time of writing, Ethereum could not sustain the attempted growth in this metric, dumping it to 17,900. This infers that there was a dearth of transactions by new addresses.
Thus, the project was finding it difficult to improve traction with new entrants. In terms of the price, ETH had lost 13.44% in the last seven days, while exchanging hands at $1,823.
Source: Santiment
Realistic or not, here’s ETH’s market cap in BTC’s terms
In Bitcoin’s [BTC] case, the public mentioned that inflows were very minor due to the massive profit-taking. This was in contrast to the six-week-long haul, which saw it gain a total of $310 million.
Other altcoins which also excelled in receiving notable inflows include Polygon [MATIC] and Solana [SOL]. The investment and digital asset trading firm noted:
“Polygon saw another week of inflows totaling US$1m with its total Assets under Management (AuM) being the 4th largest after Solana which saw US$0.74m inflows last week.”