On-chain data shows that PEPE and FET are among the altcoins that have seen strong growth in their addresses recently, which could be a positive sign.
PEPE, FET and ENS have recently experienced strong network growth
According to data from on-chain analytics firm Holythree altcoins have seen a sudden spike in their network growth. The “Network growth“This refers to an indicator that tracks the number of addresses that first come online on a given blockchain.
New address creation can occur as new investors enter the cryptocurrency or as old investors who previously sold return. Existing users creating additional addresses for a purpose such as privacy also contribute to the growth of the network.
In general, some net adoption occurs when the indicator registers an increase in value. As such, network growth can be considered a measure of the user inflow the asset receives.
When the indicator has a high value, it means that users are currently creating a large number of new addresses, a possible sign that the asset seems attractive. On the other hand, low values imply that interest in the coin may be low at the moment, as few new investors are joining the network.
Here is a chart showing the network growth trend for three assets: Pepe (PEPE), Fetch.ai (FET), and Ethereum Name Service (ENS) over the past few months:
Looks like the value of the metric has been high for all three of these assets | Source: Santiment on X
As the chart above shows, all three of these assets have seen strong growth in the network recently. This suggests that many addresses have recently made their first transactions on these networks.
The indicator is 4,196 for PEPE, 231 for ENS and 1,598 for FET. The memecoin therefore seems to be the coin that has the most adoption at the moment.
It should be noted that Fetch.ai saw a similar spike earlier, potentially meaning the tool went through a rapid adoption phase earlier than Pepe.
Historically, adoption is typically a positive sign for the long term of a cryptocurrency, as a broader user base provides a stronger foundation for future price movements.
In the short term, however, peaks in network growth can be mixed, as the influx of new users sometimes FOMO in the marketToo much hype usually causes assets to reach the top.
ENS has seen a 9% increase in the past week, so it is possible that this increase in adoption signals the development of FOMO around the asset. In the case of PEPE and FET, prices have fallen, so the Network Growth spike could have more bullish implications.
PEPE Prize
PEPE is trading around $0.00001043 at the time of writing, down almost 18% from last week.
The price of the memecoin seems to have been sliding down in recent days | Source: PEPEUSD on TradingView
Main image from Dall-E, Santiment.net, chart from TradingView.com