PEPE and Memecoins Show Declining On-Chain Activity

Recent analysis from market intelligence platform IntoTheBlock reveals a significant decline in on-chain activity for PEPE and other memecoins. This trend marks a clear distinction between established Layer 1 networks and hype-driven tokens.

Understanding the Active Addresses Metric

Active addresses serve as a key indicator of blockchain network health. This metric tracks daily transaction participants, including both senders and receivers. Higher numbers typically signal strong user engagement and network vitality.

Layer 1 Networks Show Resilience

Major Layer 1 networks like Ethereum, Avalanche, and Litecoin maintain robust on-chain activity despite price fluctuations. Ethereum’s active addresses continue to climb, demonstrating sustained user engagement regardless of market conditions. This resilience suggests strong fundamental value in these networks.

Memecoin Activity Faces Sharp Decline

PEPE’s on-chain metrics tell a different story. Active addresses peaked in November 2023 and have steadily declined since. The current price of $0.0000093 represents a 4% weekly drop. This decline suggests waning investor interest in speculative tokens.

Market Implications

The divergence between Layer 1 networks and memecoins highlights a maturing crypto market. Investors appear to favor platforms with strong fundamentals over purely speculative assets. This shift could signal the end of the memecoin boom phase.

What This Means for Investors

The data suggests a market transition toward value-based investing in crypto. Projects with clear utility and strong fundamentals may offer better long-term prospects than hype-driven tokens. Investors should consider these trends in their portfolio strategies.

The current market dynamics suggest a potential shift in investor behavior. Those holding memecoin positions might want to reassess their exposure based on these on-chain metrics.

Tags: #PEPE #Memecoins #CryptoAnalysis #OnChainMetrics #Layer1

Source: Bitcoinist