On-chain data shows that PEPE and FET are among the altcoins whose addresses have recently surged, which could be a sign of growth.

PEPE, FET and ENS have been enjoying powerful network growth recently

According to data from a chain analytics company Saintlythree altcoins saw a sudden spike in network growth. “Network growth” here refers to a metric that tracks the number of addresses that first appear online on a given blockchain.

Fresh addresses can be created due to up-to-date investors entering the cryptocurrency or venerable ones returning who previously sold. Existing users creating additional addresses for purposes such as privacy also contribute to the growth of the network.

Generally speaking, however, some net adoption occurs when the metric registers an raise in value. As such, Network Growth can be considered a measure of the influx of users that a resource receives.

When the indicator is high, it means that users are currently creating a vast number of up-to-date addresses, which is a potential sign that the asset seems attractive. On the other hand, low values ​​mean that interest in the coin may be low at the moment, as few up-to-date investors are joining the network.

Here is a chart showing the network growth trend for 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 you can see from the chart above, all three assets have seen rapid network growth recently, suggesting that many addresses have just made their first transactions on these networks.

The ratio is 4196 for PEPE, 231 for ENS, and 1598 for FET. So memecoin seems to be the coin that currently enjoys the highest adoption.

It should be noted that Fetch.ai has previously seen similar growth on a similar scale, potentially meaning that the resource simply entered a rapid adoption phase earlier than Pepe.

Historically, adoption has typically been a positive sign for a given cryptocurrency in the long term, as a broader user base provides a more solid foundation for future price growth.

In the miniature term, however, Network Growth spikes can be mixed, as sometimes the influx of up-to-date users shows FOMO in the market. Excessive hype usually leads to the asset peaking.

ENS has seen a 9% raise in the past week, so it’s possible that this raise in adoption could indicate a developing FOMO around the asset. PEPE and FET are both falling, so the spike in network growth could have more bullish implications.

Price PEPE

At the time of writing, PEPE shares are trading at around $0.00001043, down almost 18% over the past 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