The market analysis platform IntoTheBlock has disclosed how Pepe & other memecoins are presently experiencing a decrease in on-chain engagement.
Pepe Has Experienced A Significant Reduction In Active Addresses Lately
In a recent update on X, IntoTheBlock discussed how the smaller tokens and memecoins within the cryptocurrency realm have fared against the Layer 1 networks regarding recent activity levels.
The on-chain metric of importance here is the “Active Addresses,” which tracks the overall number of addresses engaged in some form of transaction activity on a specified network daily. This measure includes both senders and receivers.
A high value for this metric indicates that a considerable number of addresses are participating in transfers on the blockchain, suggesting strong user interest in the asset.
Conversely, a low metric signals that not many investors may be focused on the cryptocurrency, as only a handful are demonstrating activity on the chain.
It seems that the Layer 1 networks (meaning, the blockchains that are capable of operating independently) have witnessed the former trend in Active Addresses lately. “Despite declining price trends, on-chain engagement for Layer 1s such as Ethereum, Avalanche, and Litecoin remains vigorous,” states the analytics company.
Here is a graph illustrating the trend in the indicator’s value for Ethereum over the past few years:
The metric’s value appears to have been stabilizing for some time now | Source: IntoTheBlock on X
As depicted in the graph above, the Active Addresses metric has been increasing for Ethereum recently, indicating that the blockchain continues to attract more engagement from users despite the downward price movement.
While ETH and other Layer 1s have benefited from this on-chain growth, the smaller tokens have not been as lucky. As IntoTheBlock points out, “smaller tokens & memecoins are losing momentum swiftly as fewer new users join the space, highlighting the disparity between networks with solid fundamentals and those primarily fueled by hype.”
Pepe Active Addresses, illustrating this trend.
It appears the metric’s value has been declining in recent weeks | Source: IntoTheBlock on X
From the chart, it’s clear that the Active Addresses reached a peak for PEPE in November of last year and has since followed a downward path. The decrease in the indicator has coincided with the bearish trend in the memecoin, suggesting that the price drop may have deterred users from the network.
PEPE Price
At the moment of writing, Pepe is hovering around $0.0000093, down nearly 4% over the past week.
The price of the asset seems to have decreased recently | Source: PEPEUSDT on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com