The Intotheblock Market Intelligence Platform has revealed how Pepe and other memecoras are going through a decrease in chain activity.
Pepe has seen a remarkable fall in active addresses recently
In a new one mail In X, Intotheblock has talked about how smaller tokens and memecoras in the cryptocurrency sector have been compared with the networks of Layer 1 in terms of activity recently.
The relevance indicator in the chain here is the “active addresses”, which monitors the total number of addresses that participate in some type of transaction activity in a given network every day. The metric takes into account both for the senders and for the recipients.
When the value of this indicator is high, it means that a large number of addresses participate in transfers in the block chain. Such a trend suggests that the user’s interest in the asset is high.
On the other hand, the metric that is low implies that not many investors can be paying attention to cryptocurrency, since only a few are showing activity in the chain.
It seems that layer 1 networks (that is, block chains that can work independently of any other) have seen the first type of trend in recently active addresses. “Despite the downward price trends, the activity in the chain for layer 1 such as Ethereum, Avalanche and Litecoin is still robust,” explains the analysis firm.
Here is a table that shows the trend in the value of the indicator for Ethereum in recent years:
The value of the metric seems to have been consolidating since a while now | Source: IntoTheBlock on X
As is visible in the previous graph, the active addresses metric has recently been climbing for Ethereum, which means that the block chain continues to receive more user activity even with the decreasing price.
While ETH and other layers 1 have enjoyed this growth in the chain, smaller tokens have not been so lucky. As Intotheblock points out, “tokens & smaller memecoins are losing steam quickly as less new users enter the space, highlighting the contrast between networks with strong foundations and those promoted mainly by the advertising hype.”
Below is the PEPE active addresses, which shows this trend.
Looks like the value of the metric has been going downhill in recent weeks | Source: IntoTheBlock on X
From the graph, it is evident that active addresses reached their maximum point for Pepe in November last year and since then has been following a descending trajectory. The decrease in the indicator has coincided with the bearish action in the memecoin, so it seems that the price reduction can be what has scared users away from the network.
Pepe price
At the time of writing, Pepe is floating around $ 0.0000093, almost 4% in the last seven days.
The price of the coin appears to have gone down recently | Source: PEPEUSDT on TradingView
Outstanding image of Dall-E, Intotheblock.com, tradingView.com Chart
