Dogecoin (DOGE) Activity Surges Despite Market Consolidation
Activity on the Dogecoin (DOGE) blockchain surged in recent months, according to data shared by analyst Ali Martinez. According to him, the number of new daily Dogecoin addresses surged by 265% in just two months. This is despite the recent market consolidation period that has been experienced by the crypto industry during the last few months.
One of the best ways to understand how a blockchain network behaves is by analyzing its on-chain activity. This provides information on how the network grows, how it behaves, and whether there are some interesting patterns that could tell us which is the value that users give to this digital asset.
Cryptocurrency analyst Ali Martinez shared valuable information from IntoTheBlock in which it is possible to see how DOGE addresses surged by 265% in just two months. As per the information released by this expert, addresses moved from 14.47k to 38.43k. It is worth pointing out that during the same period of time, the price of Dogecoin moved from $0.082 to $0.068.
— Ali Martinez (@ali_charts) July 29, 2022
According to CoinGecko, Dogecoin (DOGE) is now the 11th largest virtual currency in the market. It has a price per coin of $0.06923 and a market capitalization of $9.24 billion. It is worth pointing out that during the bull market of 2021, Dogecoin reached a price of over $0.73.
Activity on the blockchain is a very important measure of how users value a network, which is something that is not always represented through the price of a coin. In the future, the price of this virtual currency could grow if demand for it increases. Furthermore, if Elon Musk comments or writes anything about Dogecoin, it is expected for the price of this digital currency to rise.
In the past, Elon Musk commented about Dogecoin and even added it as a means of payment for buying at Tesla online shop. This increased the interest in Dogecoin, which is now a top 20 virtual currency. Before Elon Musk’s involvement, DOGE was among the top 30.
Another thing that is worth mentioning is that Coinbase Commerce added support to both DOGE and Shiba Inu (SHIB). This could help increase the use of these two virtual currencies to pay for goods and services. Nonetheless, people tend to look at virtual currencies not as a currency to exchange for other things, but as an investment tool.
According to data from Google Trends, interest in Dogecoin has been decreasing since mid-2021. This trend could continue in the future unless we have a new bull market that would attract new investors and traders to the industry.
Google Trends is a very useful tool to help us understand what is the interest of people in certain topics. This is based on Google searches made by real users. It is also possible to get information about geographies and how interest changes depending on the country or region of the world.