Altcoin activity signals potential crypto market slowdown

Decline in Altcoin Activity Signals Possible Crypto Market Cooling

5 November 2025 at 14: 37

Reading time: 2 minutes

Recent data points to a cooling in the altcoin market, with a notable drop in Ethereum activity, Solana and other cryptocurrencies. A deeper analysis of these trends reveals important insights for investors and policymakers.

According to a recent analysis by Sentora, a leading provider of DeFi solutions, interest in altcoins has declined significantly recently. One of the key indicators of this development is the number of "Active Addresses" on the blockchain (the total number of addresses conducting transactions daily). An increase in this number typically indicates increased user activity and trading interest, while a decrease suggests investors may be focusing their attention elsewhere.

Currently, the indicator for Ethereum, the largest altcoin, is showing worrying signs. In July, the number of active addresses peaked at 589.000, but this number has since fallen to 488.000, representing a decrease of approximately 17%. This decline points to a decline in demand for the blockchain, a phenomenon we have also observed in previous bear markets. A similar trend is visible for Solana, which also shows a decline in active users.

Loss of Interest in Memecoins

The recent market downturn has also had a severe impact on memecoins. Dogecoin, the largest meme-based token, experienced only a slight decrease in active addresses, while Pepe suffered a dramatic drop of as much as 85%. This illustrates how quickly speculative user groups can disappear, a risk that investors in this segment cannot ignore.

Sentora also points out that DeFi trading volume is starting to decline, although it remains relatively strong compared to other crypto-related indicators. This offers investors and analysts a sign that, despite the current resilience, the dynamics in the DeFi sector are changing. It seems we've been in a cooling period in the altcoin market for over six months, with signs of an impending "winter" becoming increasingly visible.

In line with the general market dip, the price of Ethereum has seen a significant decline in recent days, recovering to $3.300. This drop confirms doubts about current market dynamics and the vulnerability of altcoins in general. It's crucial for investors to closely monitor these developments, especially as market conditions become more unpredictable.

Frequently Asked Questions

What does the decline in active addresses mean for investors?
A decline in the number of active addresses can indicate reduced demand for a cryptocurrency, which can impact its price and trading activity. It's important for investors to consider this a signal to reconsider their positions.

How does the current situation in the altcoin market compare to previous cycles?
The current indicators show similarities with previous bear markets, where a decline in activity also preceded a prolonged period of price declines and a shrinking market.

What can policymakers do in response to these developments?
Policymakers should consider evaluating regulations that promote the stability of the crypto market and strengthen investor confidence, especially during times of volatility.

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