US investment bank Goldman Sachs said that despite the weak price performance of the cryptocurrency market, fundamental indicators, especially regarding the Ethereum network, remain strong.
The bank noted that the average daily number of new Ethereum addresses in January far exceeded the “summer of DeFi” period of 2020.
Major crypto assets such as Bitcoin, Ethereum, and Solana saw limited recovery after losses at the beginning of the week. However, Goldman Sachs says that despite the weak price outlook, on-chain data paints a different picture.
According to data shared by the bank, the number of daily active addresses on the Ethereum network increased by 27.5% on a monthly basis. The number of new addresses increased by 26.8% and the number of transactions increased by 36.0%.
Similarly, on the Solana network, the number of daily active addresses increased by 24.3% and the number of transactions increased by 8.2%.
In particular, the number of new addresses created each day on Ethereum has reached an all-time high, according to Goldman Sachs. In January, an average of 427,000 new addresses were created every day. This number is significantly higher than the average of 162,000 new addresses created each day during the “Summer of DeFi” in 2020. Additionally, the number of daily active addresses on the Ethereum network has reached a new peak, increasing to 1.2 million based on a 7-day moving average.
Goldman Sachs also noted that Ethereum’s current market cap is lower than its realized market cap. Realized market capitalization represents the total cost basis calculated based on the price of each token at the time of its last on-chain move. This shows that the majority of ETH investors are incurring losses at current price levels.
Timothy Michil, research director at digital asset analysis firm BRN, emphasized the importance of ETF inflows. “A steady flow of ETF inflows into cryptocurrencies is a key indicator. Without this support, it will be difficult to sustain the uptrend,” Misil said.
*This is not investment advice.
