PEPE, FET See Sharp Growth In Adoption: Rally Soon?

On-chain data shows PEPE and FET are amongst altcoins which have seen a pointy growth of their addresses recently, an indication which may be bullish.

PEPE, FET, & ENS Have Enjoyed Sharp Network Growth Recently

In response to data from the on-chain analytics firm Santiment, three altcoins have seen a sudden spike of their Network Growth. The “Network Growth” here refers to an indicator that keeps track of the variety of addresses coming online for the primary time on a given blockchain.

Recent address creation can occur resulting from recent 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 expansion of the network.

Typically, though, some net adoption happens when the indicator registers an increase in value. As such, the Network Growth might 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 considerable amount of recent addresses, a possible sign that the asset appears attractive. Then again, low values imply the interest within the coin could also be low currently as few recent investors are joining the network.

Now, here’s a chart that shows the trend within the Network Growth for 3 assets, Pepe (PEPE), Fetch.ai (FET), and Ethereum Name Service (ENS), over the previous couple of months:

Looks just like the value of the metric has been high for all three of those assets | Source: Santiment on X

Because the above graph shows, all three of those 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’s observing probably the most adoption straight away.

It needs to be noted that Fetch.ai saw a spike of comparable scale earlier, potentially meaning that the asset just saw its rapid adoption phase sooner than Pepe.

Historically, adoption has often 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.

Within the short-term, nonetheless, spikes within the Network Growth might be mixed, as sometimes the influx of latest users shows FOMO out there. Excessive hype generally results in assets reaching the highest.

ENS has seen a surge of 9% over the past week, so it’s possible that this rise in adoption could indicate the event of FOMO across the asset. Within the case of PEPE and FET, the costs have been happening, so the Network Growth spike may need more bullish implications.

PEPE Price

PEPE is trading around $0.00001043 on the time of writing, down almost 18% over the past week.

PEPE Price Chart

The value 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

Leave a Comment

Copyright © 2024. All Rights Reserved. Finapress | Flytonic Theme by Flytonic.