Banking giant Goldman Sachs has released a report arguing that, despite recent price weakness, Ethereum’s network fundamentals remain exceptionally robust. According to the financial institution, Ethereum ETH investment is backed by solid technical data, evidenced by a metric growth that defies the prevailing bearish sentiment currently dominating the digital asset market.
Based on the presented data, the average daily number of new addresses in January significantly outperformed the levels recorded during the famous 2020 “DeFi Summer.” This surge in organic adoption suggests that, although the asset’s value has suffered setbacks, the utility and genuine interest in the network’s infrastructure continue to reach unprecedented historical levels, reflecting a healthy and growing ecosystem despite price volatility.
Network activity has shown surprising resilience, as the number of daily active addresses increased by 27.5% month-over-month, reaching a peak of 1.2 million users. Goldman Sachs emphasizes that the creation of 427,000 new daily addresses in January represents a record high, marking a massive adoption milestone compared to the 162,000 daily addresses registered during the peak of decentralized finance six years ago.
On the other hand, the report highlights a crucial technical data point: the current market capitalization has fallen below its realized capitalization. This indicator reveals that most current holders are in an unrealized loss position, which typically precedes phases of capitulation or deep accumulation for Ethereum ETH investment in the long term, suggesting a potential bottoming process for the asset.
How do institutional capital flows influence the recovery of digital assets?
The stability of exchange-traded funds remains a fundamental pillar, as Timothy Misir, research director at BRN, warns that without constant ETF inflows, it will be difficult to sustain a bullish trend. Nevertheless, the Solana network also showed notable growth with a 24.3% increase in active addresses, reinforcing the narrative of structural recovery across leading smart contract platforms during this period of price consolidation.
While the ETH price struggles to stabilize after early-week declines, Goldman Sachs analysts choose to focus on transaction volume, which rose by 36%. Therefore, Ethereum ETH investment is perceived as an undervalued asset relative to its actual usage, drawing the attention of strategic investors who prioritize fundamental data over the temporary volatility of the current market price.
Finally, the bank suggests that the market could be near an inflection point if on-chain activity continues to exceed institutional expectations. Furthermore, the regulatory clarity expected for 2026 is anticipated to act as an additional catalyst, driving a new wave of adoption that could redefine the structural value of the second most important cryptocurrency in the digital ecosystem.
