Dogecoin In A Dire Position As Daily Active Addresses Drop Drastically
October 08 2023 - 7:28AM
NEWSBTC
Dogecoin, which began as a meme cryptocurrency, has demonstrated
that it can compete successfully in the crypto market. Although
Dogecoin is still the biggest meme crypto, on-chain data points to
the crypto losing steam among whale investors. According to data
from IntoTheBlock, the number of Dogecoin transactions valued at
$100,000 or more has declined sharply over the past few months.
Data also shows that the number of daily transactions has been on a
steady decline since May. Related Reading: Here’s How Sam
Bankman-Fried Allegedly Used Customer Funds On Alameda Research
Dogecoin Whale Transactions Dogecoin seems to be losing
interest from whale traders. A deep dive into on-chain data from
IntoTheBlock has shown Dogecoin witnessed only 651 whale
transactions in the past 24 hours and 4.85k whale transactions
throughout the week. This metric follows transactions above
$100,000, but its current level is a pale reflection of Dogecoin’s
past performance. At the height of the Dogecoin hype in 2021, whale
transactions made up a sizable portion of all Dogecoin transfers,
reaching as high as 39.3k transactions in one week. A metric
following the number of overall transactions has shown similar
results of low volume. Dogecoin recorded a staggering increase of
8,220% in daily transactions to reach 2.08 million on May 27, but
this count has since fallen to just 38,000 transactions in the past
24 hours. When daily active addresses decline this rapidly, it’s
usually a sign that interest in the crypto asset is waning. DOGE
market cap currently at $8.6 billion. Chart: TradingView.com
Dogecoin has been on a downtrend for quite some time, although it
is still the 9th largest crypto in terms of market cap. At the time
of writing, Doge is trading at $0.06133, down by 3.59% in a monthly
timeframe. The crypto has also witnessed a 22.24% drop in trading
volume in the past 24 hours. Declining Interest In Dogecoin And
Other Meme Coins The value of meme cryptocurrencies is highly
dependent on hype and popularity rather than real-world utility.
So, declining interest and activity among users and investors can
be an issue. Related Reading: Binance Immense XRP Holdings Exposed
In Detailed Proof of Reserves Report Shiba Inu has taken the
attention of the crypto industry in the past few months, as it
looks to elevate itself from being just a meme crypto. Other meme
coins like Dogecoin and Dogelon Mars have struggled to receive
interest from investors. According to on-chain analytics firm
Santiment, social media talks about meme coins are now at their
lowest level since 2020. Though the drop in transaction count is
worrying, Dogecoin has defied the odds before. There’s a good
chance that X (formerly Twitter) could incorporate Dogecoin
payments into its platform. If this is implemented, it could serve
as the next catalyst for Dogecoin’s growth. Featured image from
Getty Images
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