Market Dip? Not For Dogecoin Wallets As Over 400,000 New Users Drive Frenzy Upward
February 06 2024 - 5:12AM
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Dogecoin, the Shiba Inu-faced cryptocurrency born from a meme,
finds itself in an intriguing scenario. Despite a recent 23% price
plunge since December, the network is experiencing an unprecedented
boom in user adoption, marking a fascinating dichotomy in its
current state. DOGE Frenzy: Wallet Growth Skyrockets 86% On the
bullish side, non-zero wallets, indicating active users holding
DOGE, have witnessed a staggering 7.2% growth since January 22nd.
This translates to roughly 414,000 new wallets joining the network
in just two weeks, representing the fastest growth in Dogecoin’s
decade-long history. These new users primarily hold smaller
amounts, suggesting potential for future engagement within the
ecosystem. Related Reading: Crypto Winter In Spain? New Taxes
Target Digital Assets 🐶 #Dogecoin‘s value is -23% since its top on
Dec. 9th. But the #memecoin‘s wallets with >0 $DOGE coins has
been growing at the fastest rate in the network’s decade long
history. 413.8K new wallets, mostly holding 0.001-1 $DOGE, have
been added in 2 weeks. https://t.co/GjDghuB9H9
pic.twitter.com/l6Pv0KvkKW — Santiment (@santimentfeed) February 6,
2024 Furthermore, Dogecoin adoption has skyrocketed by a
mind-boggling 86% in the past week, with over 890,000 new addresses
appearing on the blockchain, analysts at IntoTheBlock disclosed.
Analysts attribute this surge to several factors, including the
revival of “Doginals” (NFTs on the Dogecoin chain), the recent
release of the iconic game Doom on the Dogecoin blockchain, and the
growing popularity of Xpayments, a platform enabling DOGE
transactions in the real world. Dogecoin’s Challenge: Balancing
Growth And Stability This price volatility highlights a key
challenge for Dogecoin: balancing user growth with sustainable
value appreciation. While the increasing user base indicates
potential for future adoption, the lack of diverse use cases and
inherent inflationary nature might hinder long-term price
stability. Unlike Bitcoin with its capped supply, Dogecoin has an
inflationary model, meaning new coins are continuously created,
potentially impacting its value. Dogecoin currently trading at
$0.07834 on the daily chart: TradingView.com Major Backers For The
Meme Coin Meanwhile, SpaceX – the leading private space exploration
company – threw its weight behind Dogecoin by accepting it as
payment for the rescheduled DOGE-1 Moon mission. This endorsement
not only adds legitimacy to the meme coin but also injects a dose
of excitement into the community. Geometric Energy Corporation, the
mission’s sponsor, revealed they paid SpaceX in DOGE to secure a
new launch date following a delay. While the exact timing remains
shrouded in mystery, the news has undoubtedly bolstered community
sentiment. However, amidst the user boom, Dogecoin’s price
performance paints a contrasting picture. As of February 6th, DOGE
is trading at $0.078, reflecting a 0.3% decrease in the last 24
hours and a 3.48% decline over the past week. This dip extends to a
2.77% loss for the month, marking a significant drop from its
December peak. Related Reading: Meme Coin Blues: Nearly 70% Of
Shiba Inu Investors Underwater As Price Flops Featured image from
Adobe Stock, chart from TradingView
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