On-chain data shows PEPE and FET are among altcoins that have seen a sharp growth in their addresses recently, a sign that may be bullish.
PEPE, FET, & ENS Have Enjoyed Sharp Network Growth Recently
According to data from the on-chain analytics firm Santiment, three altcoins have seen a sudden spike in their Network Growth. The “Network Growth” here refers to an indicator that keeps track of the number of addresses coming online for the first time on a given blockchain.
New address creation can occur due to new investors coming into the cryptocurrency or old ones who had sold earlier returning. Existing users creating additional addresses for a purpose like privacy also contribute to the growth of the network.
In general, though, some net adoption happens when the indicator registers a rise in value. As such, the Network Growth can be considered a measure of the user influx the asset receives.
When the indicator has a high value, it means the users are currently creating a large amount of new addresses, a potential sign that the asset appears attractive. On the other hand, low values imply the interest in the coin may be low currently as few new investors are joining the network.
Now, here is a chart that shows the trend in the Network Growth for three assets, Pepe (PEPE), Fetch.ai (FET), and Ethereum Name Service (ENS), over the last few months:
Looks like the value of the metric has been high for all three of these assets | Source: Santiment on X
As the above graph shows, all three of these assets have seen a spike in Network Growth recently, suggesting that many addresses have just made their first transactions on these networks.
The indicator is 4,196 for PEPE, 231 for ENS, and 1,598 for FET. Thus, the memecoin appears to be the coin that is observing the most adoption right now.
It should be noted that Fetch.ai saw a spike of similar scale earlier, potentially meaning that the asset just saw its rapid adoption phase earlier than Pepe.
Historically, adoption has usually been a constructive sign for any cryptocurrency long-term, as a wider user base provides a stronger foundation for future price moves to grow on.
In the short-term, however, spikes in the Network Growth can be mixed, as sometimes the influx of new users shows FOMO in the market. Excessive hype generally leads to assets reaching the top.
ENS has seen a surge of 9% over the past week, so it’s possible that this rise in adoption could indicate the development of FOMO around the asset. In the case of PEPE and FET, the prices have been going down, so the Network Growth spike might have more bullish implications.
PEPE Price
PEPE is trading around $0.00001043 at the time of writing, down almost 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 from Dall-E, Santiment.net, chart from TradingView.com
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