On-chain data shows that PEPE and FET are among the altcoins that have seen sharp growth in their addresses recently, a potentially bullish sign.
PEPE, FET, & ENS Have Enjoyed Sharp Network Growth Recently
According to data from on-chain analytics firm Santiment, three altcoins have seen a sudden spike in their network growth. “Network Growth” here refers to an indicator that tracks the number of addresses that come online for the first time on a given blockchain.
The creation of new addresses may be due to new investors entering the cryptocurrency or old ones who sold a previous return. Existing users who create additional addresses for purposes such as privacy also contribute to the growth of the network.
However, generally, net acceptance occurs when the index registers an increase in value. As such, Network Growth can be considered as a measure of user traffic the property receives.
If the index has a high value, it means that users are currently creating a large number of new addresses, which is a strong sign that the property seems attractive. On the other hand, low prices suggest that interest in the coin may be low as fewer new investors join the network.
Now, here is a chart showing the trend in Network Growth of 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 graph above shows, all three of these assets have seen an increase in Network Growth recently, suggesting that many addresses have recently made their first operations on these networks.
The index is 4,196 for PEPE, 231 for ENS, and 1,598 for FET. Thus, memecoin seems to be the coin that is seeing the most adoption at the moment.
It should be noted that Fetch.ai has seen similar scaling before, which may mean that the asset has just seen its faster adoption phase than Pepe.
Historically, adoption is often a positive sign for any cryptocurrency for the long term, as a broad user base provides a solid foundation for future price moves to grow.
In the short term, however, spikes in Network Growth can be mixed, as sometimes the influx of new users reflects FOMO in the market. Excessive hype often leads to stocks reaching higher levels.
ENS saw an increase of 9% last week, so it is possible that this increase in acquisitions could reflect the development of FOMO regarding the asset. In the case of PEPE and FET, prices have been falling, so the Network Growth spike may have additional implications.
The highest number of PEPEs
PEPE is trading at around $0.00001043 at the time of writing, down around 18% in the last 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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