Dogecoin Sees Resurgence in Popularity with Increased On-Chain Activity
Dogecoin (DOGE) is experiencing a resurgence in popularity, as its on-chain activity has recently picked up after a period of relative quietness. The number of addresses holding Dogecoin surpassed five million, marking a significant milestone. This surge in adoption is accompanied by a notable increase in user activity on the Dogecoin network.
Increased Active Addresses and Total Addresses with Balance
The number of active addresses has more than doubled, reaching 168,000, which is the highest since March 2022. Additionally, the total number of addresses with a balance has reached a new peak at 5.11 million this week, according to IntoTheBlock’s latest update.
Spike in Confirmed Transactions
Confirmed transactions on the Dogecoin blockchain have spiked, experiencing a remarkable 1,000% increase in the past 10 days, hitting the highest level since June.
Potential Surge in Value
Despite a recent decline in price, the rise in on-chain activity suggests growing interest from institutional investors and large holders, indicating a potential surge in value for Dogecoin in the near future. This is further supported by the transfer of previously dormant Dogecoin stored in older wallets, indicating a potential shift in the asset’s price trajectory.
Concerns Over Wallet Control
However, there is a concern that 4.8 million wallets, holding 1.5% of the total Dogecoin supply, have control over the cryptocurrency’s price.
Influence of “Doginals”
IntoTheBlock suggests that this surge in activity is likely driven by “Doginals,” which do not require a significant on-chain balance of DOGE.
Hot Take: Dogecoin Gains Momentum with Increased On-Chain Activity
Dogecoin is making a comeback with its recent surge in on-chain activity. The number of addresses holding Dogecoin has surpassed five million, accompanied by a significant increase in active addresses and confirmed transactions. Although the price has experienced a decline, the rise in on-chain activity reflects growing interest from institutional investors and large holders. This, coupled with the transfer of previously dormant Dogecoin, suggests a potential shift in the asset’s price trajectory. However, concerns remain over wallet control and the influence of “Doginals.” Overall, Dogecoin’s increased on-chain activity indicates a potential surge in value in the near future.
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