Altcoin Winter Here? Ethereum, Solana Activity Plunges
On-chain data indicates a potential 'altcoin winter' as Ethereum, Solana, and other cryptocurrencies are experiencing reduced activity. Metrics such as 'Active Addresses' reveal declining user engagement, with Ethereum seeing a 17% drop and Solana witnessing a 30% decline in Q3 2025. Memecoins like Dogecoin and Pepe are also facing decreases, with Pepe showing an 85% reduction in activity. Additionally, DeFi trading volumes are trending downward. Analytics firm Sentora suggests these changes may signal a bear market phase but notes it is too early to confirm a prolonged altcoin downturn.
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Decline in Altcoin Activity
On-chain data suggests that signs of an altcoin winter may be emerging as major cryptocurrencies such as Ethereum and Solana are witnessing a decline in activity. Institutional DeFi solutions provider Sentora (formerly known as IntoTheBlock) highlighted how interest in altcoins has been cooling off recently.
Active Addresses as an Indicator
The main indicator discussed here is the 'Active Addresses', which tracks the total number of addresses participating in some form of transaction daily. When this metric rises, it indicates that more users are engaging in blockchain transactions, implying growing trading interest. However, a decline in this number points to reduced interest, as investors may be shifting their focus elsewhere.
Ethereum's Declining Activity
Over the past few years, the Ethereum Active Addresses metric showcases a significant trend. In late July, the active addresses peaked at 589,000, but they have since dropped to 488,000, marking a decline of about 17%. Sentora noted that "fewer users interacting on ETH indicates weaker on-chain demand, a pattern seen in past bear-market phases."
Solana's Performance and Trends
Similarly, Solana, another prominent altcoin, has experienced a downward trajectory. During Q3 2025, the monthly Active Addresses metric for Solana dropped by 30%. Despite being an outperformer in this cycle, momentum is cooling, as highlighted by Sentora.
Impact on Memecoins
Memecoins have also been severely impacted amidst the market downturn. For example, Dogecoin has only experienced a slight decrease in Active Addresses, whereas Pepe has undergone a drastic reduction of 85%. Sentora remarked, "This drop shows how quickly speculative user bases can evaporate."
DeFi Volume and Altcoin Winter Predictions
Additionally, DeFi trading volumes have started trending downward. While DeFi activity remains relatively strong compared to other cryptocurrency metrics, the downward shift aligns with the general market trend. Sentora suggested that the altcoin market might be entering a winter phase, stating, "It’s too early to tell, but the current data echoes past cycles. We are already 6+ months into an altcoin slowdown, with winter signs popping up."
Ethereum Price Movement
Ethereum prices have followed the broader market downturn, with the cryptocurrency's value retracing to $3,300. This reflects the ongoing struggles and uncertainties across the altcoin market.