On-chain Data Shows High Usage for Dogecoin
The Dogecoin network has been experiencing consistently high usage recently, with the coin handling a million transactions per day. According to data from IntoTheBlock, the “Number of Transactions” metric shows that users are making many transfers on the network, indicating a high level of interest in cryptocurrency among investors.
Conversely, a low level of usage suggests that not many people are paying attention to Dogecoin. The chart below illustrates the trend in the Number of Transactions over the past month:
Implications of High Activity for Dogecoin
High usage is generally seen as a positive signal for any cryptocurrency network. It indicates strong trading interest in the coin or the popularity of other blockchain applications like DeFi. While some assets experience a burst of activity during volatile price movements, resulting in temporary high usage, Dogecoin has maintained its high transaction count for an extended period. This suggests that the current users on the network may be here to stay.
Surge in Price for Dogecoin
Although the high Number of Transactions initially had no impact on Dogecoin’s price, it may now be influencing the market. Over the past week, Dogecoin has enjoyed a surge of over 8%, and it is currently trading around $0.087. The chart below illustrates its performance over the past month:
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