The market intelligence platform IntoTheBlock has recently shed light on the declining on-chain activity of Pepe and other memecoins in the cryptocurrency sector. According to a new post on X, IntoTheBlock has compared the activity of smaller tokens and memecoins to that of Layer 1 networks, such as Ethereum, Avalanche, and Litecoin, in terms of Active Addresses.
Active Addresses is an on-chain indicator that tracks the total number of addresses participating in transaction activity on a given network each day, including both senders and receivers. A high value of this indicator indicates a large number of addresses engaging in transfers on the blockchain, signaling high user interest in the asset. Conversely, a low value suggests minimal investor attention, with only a few addresses displaying activity on the chain.
While Layer 1 networks like Ethereum have seen a rise in Active Addresses, indicating continued user engagement despite price declines, smaller tokens and memecoins have experienced a decline in on-chain activity. IntoTheBlock highlights the contrast between networks with strong fundamentals and those primarily driven by hype, noting that smaller tokens are losing steam as fewer new users enter the space.
The chart for Pepe’s Active Addresses illustrates this trend, showing a peak in November of last year followed by a downward trajectory. The decline in Active Addresses coincides with bearish action in the memecoin, suggesting that the price drawdown may have deterred users from the network.
At the time of writing, Pepe is trading around $0.0000093, down nearly 4% in the last seven days. The analytics firm’s findings underscore the challenges faced by memecoins and smaller tokens in maintaining on-chain activity amid market fluctuations. For more information, you can read the full article on bitcoinist.com.