According to U.Today, Ethereum (ETH) is striving to restore confidence in its performance and future potential amid a challenging market environment. Notably, the protocol has experienced its largest network growth in over a year, as reported by top market analyst Ali Martinez. On April 29, Ethereum's new address count increased by 139,560, indicating a significant boost in network activity.
Despite this positive development, Ethereum's price has dropped by more than 11% in the past month. The Ethereum ecosystem has also been grappling with congestion issues, contributing to its erratic performance. However, Ethereum continues to hold its position as the leading decentralized finance (DeFi) protocol, and the increase in address count suggests that it is regaining some of the dominance it had been gradually losing.
According to Martinez's analysis, the new addresses were created when Ethereum's price was at $3,214.14. With the price now as low as $2,948.46, a significant discount window has opened for these new market entrants to make their initial Ethereum purchases. This suggests that the current price drop could be a fundamental bullish network indicator that could trigger a reversal.
The market has been eagerly anticipating the approval of a spot Ethereum ETF, which could significantly boost the ecosystem. VanEck and Ark 21Shares' filings are due for final decisions this month, and a positive outcome could have a major impact on the market. However, the chances of approval are considered low, as the U.S. SEC is considering designating Ethereum as a security. Despite this, the recent growth in network activity could help Ethereum regain its momentum in the coming weeks.