- Rising active addresses propelled the significant price increase.
- Circulation fell, and many old coins remained stagnant, indicating another upside.
The price of Pepe [PEPE] increased by 15.75% in the last 24 hours before falling 2%, according to data from CoinMarketCap.
Though other memecoins also jumped, AMBCrypto found specific reasons why the hike was special for PEPE.
Price is tied up with activity
According to on-chain data from Santiment, PEPE’s 24-hour active addresses increased from 2669 on the 1st of May to 4470 at press time.
Active addresses show the number of distinct users transacting on the network. In the broader crypto market, this metric does not always correlate with price.
However, a look at PEPE’s situation showed the price has a strong correlation with network activity.
Source: Santiment
Should the metric continue to rise, the price of PEPE might also follow. On the contrary, a decline in active addresses might slow down the memecoin’s upward movement.
As a result of the price increase, Social Dominance jumped. Social Dominance shows the rate of discussions about a project when compared to others in the top 100.
Therefore, the increase implied that the market gave the memecoin the attention that others did not get. However, an extremely high social dominance might not be great for price as shown in the chart below.
A rise to $0.00001 may be next
For instance, when Social Dominance hit 2.21% on the 4th of March, the token reversed from its upswing. A similar situation occurred on the 1st of April, as the metric indicated that PEPE was overhead.
Furthermore, Social Dominance was at a relatively healthy level. As such, the price of the token might hit $0.00001 before any retracement appears.
As for Social Volume, AMBCrypto noticed that it was not near previous peaks, indicating that the search for PEPE was not intense.
Following historical data, this means that there might be a buying opportunity available before it reaches the local top.
Source: Santiment
In the meantime, the one-day circulation fell from 11.50 trillion to 3.97 trillion. Regarding its price, the decline in circulation might help PEPE sustain the northward move.
This is because less circulation gives room for less selling pressure. However, this would only be the case if the buying momentum increases.
Another metric we evaluated was the dormant circulation. At press time, the 90-day dormant circulation decreased to 59.54 billion.
Source: Santiment
Realistic or not, here’s PEPE’s market cap in DOGE terms
This decrease meant that old holders of the token refrained from moving their assets. Hence, most are unwilling to sell. Should this be the case going forward, another PEPE rally could be close.
This time, the token could drive toward a new high.
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