Dogecoin Sees Slower Growth in Number of Holders
The Dogecoin (DOGE) network is currently experiencing a period of stagnancy as the number of addresses holding the meme coin has slowed down. In March, the total number of DOGE holders only increased by 60,000, compared to significant expansions in previous months. This slowdown is surprising given the recent popularity of meme coins in the crypto community.
March Sees Minimal Increase in DOGE Holders
Data from market intelligence platform Santiment reveals that since the beginning of March, there has been a minimal increase in the total number of DOGE holders. At the start of the month, there were 6.51 million users holding DOGE, and this figure has only increased to 6.57 million.
- In contrast, February saw a substantial rise in DOGE holders, with an increase from 5.92 million to 6.51 million.
- The network experienced an even larger growth spurt between January and February, adding over 400,000 new addresses.
Importance of Number of Addresses Holding DOGE
The number of addresses holding Dogecoin is significant as it can reflect positively on the coinโs price. In January alone, when 247,240 new DOGE addresses were created, crypto analyst Ali Martinez noted that sustained expansion could have a positive impact on DOGEโs price.
Possible Reasons for Stagnant Holder Activity
While the stagnancy in Dogecoinโs holder activity may come as a surprise given the meme coin frenzy in the crypto space, there are plausible explanations for this trend:
- Meme coin traders may not be primarily invested in prominent meme tokens like DOGE and instead focus on undervalued gems.
Performance of Other Top Meme Coins
Similar to DOGE, other top meme coins, such as Shiba Inu (SHIB) and Pepe (PEPE), have also experienced slower growth in the number of holders:
- SHIB has not seen an increase in its holder count since the beginning of March, with the total number of users holding the coin remaining at 1.38 million.
- PEPE currently has less than 200,000 holders, despite achieving a year-to-date gain of over 370%.
In terms of user base, DOGE is ahead of SHIB and PEPE.
Conclusion
The recent stagnancy in Dogecoinโs network activity, with slower growth in the number of addresses holding DOGE, is unexpected given the popularity of meme coins. However, this trend may be attributed to meme coin traders focusing on undervalued tokens rather than prominent ones. It remains to be seen if Dogecoinโs user base will pick up again in the future.
Hot Take: DOGE Price Drops Amid Slow Growth
At the time of writing, DOGE is trading at around $0.12, experiencing a nearly 14% decrease in the last 24 hours. This drop in price coincides with the slower growth in the number of DOGE holders. The future trajectory of Dogecoinโs price and user base will depend on renewed interest and developments within the network.
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