Dogecoin Sees Surge in New Addresses, Signaling Potential Bullish Trend
Recent on-chain data reveals a significant increase in the number of new Dogecoin addresses, suggesting a potentially bullish trend for the meme coin. The metric in focus is “Daily New Addresses,” which tracks the total number of addresses created on the Dogecoin blockchain each day.
There are two main reasons why new addresses are generated on the blockchain. The first is natural adoption, as new investors create addresses for themselves. The second reason could be existing users generating additional addresses for privacy purposes.
In this case, the spike in Daily New Addresses indicates a surge in fresh interest and potential investment into Dogecoin. Conversely, a low value for this metric suggests decreased attention from investors.
New Daily Addresses Reach All-Time High
A chart depicting the trend in Dogecoin’s Daily New Addresses over its entire history shows a recent significant growth. In the past week alone, the metric has risen by nearly 1,100%. It has now surpassed previous peaks seen shortly after the coin’s launch, indicating the highest daily address creation ever.
Historically, increased adoption has been a positive sign for any cryptocurrency network and can lead to future price growth. This current surge in network expansion could potentially reflect positively on DOGE prices.
DOGE Price Struggles to Recover
Despite this surge in new addresses, Dogecoin’s price has remained relatively flat since the start of the year. The meme coin is currently trading around $0.0817, down approximately 9% for the month.
Hot Take: Can Dogecoin Rebound?
With the recent strong adoption on Dogecoin’s network, it remains to be seen if the meme coin can turn its performance around in the coming month. Increased network expansion has historically been a positive indicator for cryptocurrency prices, but Dogecoin’s price has yet to reflect this trend. Only time will tell if the surge in new addresses will translate into a bullish trend for DOGE.
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