Dogecoin (DOGE), the popular meme-inspired cryptocurrency, has witnessed a significant uptick in activity over the past 24 hours. According to data from CoinMarketCap, trading volume for DOGE has surged by a substantial 35%. This surge in trading activity has been accompanied by a notable increase in on-chain metrics.
IntoTheBlock’s data reveals a sharp rise in the number of daily active DOGE addresses. This metric, which represents the total number of unique addresses engaging in transactions on a given day, has reached a 30-day high of 55,440. This figure signifies a 32% increase compared to the previous day’s count of 42,000 active addresses.
The sustained growth in daily active addresses over the past week suggests heightened on-chain activity within the Dogecoin ecosystem. Moreover, the creation of new addresses has also seen an uptick, indicating a potential influx of new users to the platform.
While the number of daily active addresses has experienced a slight decline from its peak, the overall trend remains positive. IntoTheBlock data further highlights an 11.41% increase in new address creation and a 6.22% rise in total active addresses compared to the previous week.
Also Read: Dogecoin On Fire – Massive Transaction Spike Ignites Price Hopes
What Does This Mean for Dogecoin?
The increase in both trading volume and on-chain activity points to growing interest and participation in the Dogecoin network. As more users engage in transactions, there’s a potential for upward pressure on the DOGE price. Additionally, the rise in new addresses suggests a positive sentiment surrounding the cryptocurrency, with both existing and new users contributing to the overall ecosystem growth.
However, while the surge in trading volume might indicate buying pressure, it’s essential to consider that it could also be attributed to selling activity. Interestingly, IntoTheBlock data shows a net outflow of $14.5 million worth of DOGE from exchanges over the past seven days. This suggests that more DOGE tokens have been transferred to private wallets, potentially indicating a bullish sentiment among some traders.
Despite these positive indicators, the price of DOGE has shown mixed signals. After initially climbing to $0.104, it has retraced slightly, currently trading at $0.1002. This suggests that the recent price movement might be a result of a combination of buying and selling pressures.
As the Dogecoin ecosystem continues to evolve, market participants will be closely monitoring on-chain metrics and trading activity to gauge the cryptocurrency’s future trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
