On-chain data shows that PEPE and FET are among the altcoins that have seen strong address growth recently, a sign that could be bullish.
PEPE, FET and ENS have recently experienced strong growth in their network
According to data from the on-chain analytics company SantimentThree altcoins have seen a sudden surge in their network growth.Network growth” here refers to an indicator that keeps track of the number of addresses first going live on a given blockchain.
The creation of new addresses can occur due to new investors entering the cryptocurrency or the return of old investors who had previously sold. Existing users creating additional addresses for reasons such as privacy also contribute to the growth of the network.
In general, however, some networks adoption occurs when the indicator records an increase in value. As such, network growth can be seen as a measure of the influx of users that the asset is receiving.
When the indicator has a high value, it means that users are currently creating a large number of new addresses, a potential sign that the asset seems attractive. On the other hand, low values imply that interest in the cryptocurrency may be low at the moment, as few new investors are joining the network.
Now here is a chart that shows 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 seen in the chart above, all three of these assets have recently seen an increase in network growth, suggesting that many addresses are just making their first transactions on these networks.
The indicator is 4,196 for PEPE, 231 for ENS and 1,598 for FET. Thus, memecoin seems to be the currency that is currently experiencing the greatest adoption.
It’s worth noting that Fetch.ai saw a spike of similar magnitude earlier, potentially meaning the asset saw its rapid adoption phase earlier than Pepe.
Historically, adoption has generally been a constructive sign for any cryptocurrency in the long term, as a larger user base provides a stronger foundation on which future price movements can build.
In the short term, however, network growth spikes can be mixed, as sometimes seen by the influx of new users. FOMO in the marketExcessive hype usually leads assets to peak.
ENS has seen a 9% surge over the past week, so it’s possible that this surge in adoption could indicate that FOMO is building around the asset. In the case of PEPE and FET, prices have been falling, so the spike in network growth could have more bullish implications.
PEPE Award
PEPE is trading around $0.00001043 at the time of writing, down nearly 18% over the past week.
The price of the memecoin seems to have been sliding down in recent days | Source: PEPEUSD on TradingView
Featured image by Dall-E, Santiment.net, chart by TradingView.com
