Dogecoin Sees 32% Spike In Major Metric That Could Send Price Surging

The popular dog-themed cryptocurrency Dogecoin (DOGE) has experienced a notable surge in activity over the past 24 hours. According to data from CoinMarketCap, there has been a 35% increase in trading volume during these 24 hours.

In addition to the spike in trading volume, data from IntoTheBlock has highlighted a rise in activity among DOGE addresses. Specifically, the number of daily active addresses, which represents the total number of unique addresses involved in transactions on a given day, recently surged to 55,440. Interestingly, this is the highest count of daily DOGE active addresses within a 30-day timeframe.

Dogecoin Sees 32% Spike In Active Addresses

The daily active addresses on DOGE have increased over the past week, indicating higher on-chain transaction activity. This increase in on-chain activity is also accompanied by an increase in the number of new addresses created on the DOGE blockchain. Notably, the daily active addresses reached 55,440 over the weekend, which is a 32% increase from the 42,000 active addresses recorded on the previous day.

However, it is important to note that while the number of daily active addresses has since dipped slightly from its peak, the overall trend remains positive. According to data from IntoTheBlock, there has been an 11.41% increase in the number of new addresses created and a 6.22% increase in total active addresses compared to the same time last week.

What Does This Mean For DOGE?

This increase in activity reflects growing interest and participation in the Dogecoin network. As more users engage in transactions, this could potentially contribute to a price increase. The rise in new addresses also indicates positive sentiment surrounding DOGE, suggesting that not only are existing users becoming more active, but new participants are joining the Dogecoin ecosystem, which also contributes to the overall increase in on-chain activity.

Data from CoinMarketCap shows a 35% increase in daily trading volume. Such an increase in volume indicates that more Dogecoins have changed hands in the past 24 hours. It is important to note that this increase in trading volume could be due to selloffs on exchanges as much as buying pressure.

However, IntoTheBlock reports a cumulative negative net flow of $14.5 million worth of DOGE on exchanges over the past seven days. Notably, this suggests more DOGE tokens have been transferred from exchanges to private wallets than those sent into exchanges for selloffs, reflecting a lingering bullish sentiment from some DOGE traders.

However, the bullish sentiment is yet to be reflected in the price of DOGE. At the time of writing, DOGE is trading at $0.1002. DOGE initially trended up to $0.104 yesterday but reversed course and is now down 1.93% over the past 24 hours. This suggests that the increase in trading volume is a combination of earlier buying pressure that later turned into a minor selloff.

Featured image from iStock, chart from Tradingview.com