Dogecoin Faces Decline in Daily Active Addresses, Raising Concerns

Dogecoin Faces Decline

Dogecoin, a cryptocurrency that started as a meme, has enjoyed a successful run in the crypto market. However, recent on-chain data signals a decline in its appeal to large investors, known as whales, and a decrease in daily transactions. On-chain data highlights a significant drop in Dogecoin whale transactions and daily activity, raising questions about the meme cryptocurrency’s future. 

1. Dogecoin Whale Transactions

Data from IntoTheBlock reveals a stark decline in Dogecoin transactions valued at $100,000 or more over the past few months. In the last 24 hours, Dogecoin saw only 651 whale transactions, with a total of 4.85k throughout the week. This is a significant drop compared to its performance during the peak of the Dogecoin hype in 2021, when whale transactions reached as high as 39.3k in a single week.

Moreover, overall transaction volume has also dwindled. Dogecoin witnessed an impressive 8,220% surge in daily transactions, peaking at 2.08 million on May 27. However, this number has since plummeted to just 38,000 transactions in the past 24 hours. Such a rapid decline in daily active addresses often indicates a waning interest in the cryptocurrency.

Despite being the 9th largest cryptocurrency by market capitalization, Dogecoin has been on a prolonged downtrend. At present, it is trading at $0.06133, reflecting a 3.59% decrease over the past month. Additionally, the cryptocurrency has experienced a 22.24% drop in trading volume within the last 24 hours.

2. Declining Interest in Dogecoin and Meme Coins

Meme cryptocurrencies, including Dogecoin, heavily rely on hype and popularity rather than practical utility. Therefore, a decline in user and investor interest can pose significant challenges.

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Shiba Inu, for example, has garnered significant attention in the crypto industry recently as it seeks to transition from being a mere meme coin. In contrast, other meme coins like Dogecoin and Dogelon Mars have struggled to maintain investor interest. According to on-chain analytics firm Santiment, social media discussions surrounding meme coins are now at their lowest levels since 2020.

However, Dogecoin has defied expectations in the past. There is speculation that X (formerly Twitter) could potentially integrate Dogecoin payments into its platform, which could serve as a catalyst for the cryptocurrency’s future growth.

Conclusion

The recent decline in Dogecoin’s daily active addresses and whale transactions raises concerns about the cryptocurrency’s prospects. While it faces challenges, Dogecoin has surprised the market before, leaving room for potential growth, especially if it secures partnerships like the rumored integration with X.

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Dogecoin, a cryptocurrency that started as a meme, has enjoyed a successful run in the crypto market. However, recent on-chain data signals a decline in its appeal to large investors, known as whales, and a decrease in daily transactions. On-chain data highlights a significant drop in Dogecoin whale transactions and…

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