US investment bank Goldman Sachs stated that despite the weak price performance in the cryptocurrency market, fundamental indicators, particularly on the Ethereum network, remain strong.
The bank noted that the average daily number of new Ethereum addresses in January far surpassed the “Summer of DeFi” period of 2020.
Following the declines at the start of the week, major crypto assets such as Bitcoin, Ethereum, and Solana have seen a limited recovery. However, according to Goldman Sachs, despite the weak price outlook, onchain 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 rose 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 rose by 8.2%.
According to Goldman Sachs, the number of new addresses created daily, particularly on Ethereum, has reached a record high. In January, an average of 427,000 new addresses were created daily. This figure is significantly higher than the average of 162,000 new addresses created daily during the “Summer of DeFi” in 2020. Furthermore, the number of daily active addresses on the Ethereum network reached a new peak, rising to 1.2 million based on a 7-day moving average.
Goldman Sachs also noted that Ethereum’s current market capitalization has fallen below its realized market capitalization. Realized market capitalization represents the total cost basis calculated based on the price of each token at the time of its last on-chain movement. This indicates that a large portion of ETH investors are currently in a loss position at current price levels.
Timothy Misir, research director at digital asset analysis company BRN, highlighted the importance of ETF inflows. Misir stated, “The steady flow of ETF inflows into cryptocurrencies is a key indicator. Without this support, it will be difficult for the uptrend to be sustainable.”
*This is not investment advice.
