The market intelligence platform, IntoTheBlock, has highlighted a recent downturn in on-chain activity among Pepe and other memecoins. According to their observations, these smaller tokens are currently facing a significant decline, particularly when compared to the Layer 1 networks.
Pepe’s Declining Active Addresses
In a recent post on the platform X, IntoTheBlock addressed the differing activity levels between smaller tokens and well-established Layer 1 blockchains. They focused on the "Active Addresses" metric—an insightful measure of total addresses involved in daily transactions, whether sending or receiving on a given network.
A high value of Active Addresses indicates strong user engagement, suggesting widespread interest in a particular asset. Conversely, a low value suggests limited investor engagement, signaling diminished activity on the blockchain.
Interestingly, Layer 1 networks, which operate independently, have maintained high levels of user engagement. "Despite downward price trends, on-chain activity for Layer 1s like Ethereum, Avalanche, and Litecoin remains robust," IntoTheBlock noted.
The following chart illustrates how Ethereum’s Active Addresses metric has evolved over several years:
Image showing Ethereum’s Active Addresses
The graph reveals that Ethereum has seen a steady increase in active addresses, indicating strong user activity despite falling prices.
While Ethereum and similar Layer 1s are thriving in terms of on-chain activity, smaller tokens tell a different story. IntoTheBlock observed that "smaller tokens & memecoins are losing steam quickly as fewer new users enter the space, highlighting the contrast between networks with strong fundamentals and those driven primarily by hype."
The pattern for Pepe is evident in the chart below:
Image illustrating Pepe’s Active Addresses
Pepe’s Active Addresses soared last November, but have steadily declined since. This decline aligns with the memecoin’s bearish price movement, which seems to have deterred users from engaging with the network.
Pepe’s Current Price
Presently, Pepe is valued at approximately $0.0000093, reflecting a nearly 4% decrease over the past week.
Image depicting Pepe’s Price Chart
The recent trend shows a downward trajectory for the coin’s value.
Featured images from Dall-E and IntoTheBlock.com; chart sourced from TradingView.com.
