There has been a significant increase in Dogecoin's price, accompanied by a notable uptick in transaction volumes.
Dogecoin (DOGE) has experienced a substantial price surge in recent weeks, defying the overall market volatility. A contributing factor to this surge may be the significant increase in transaction volume on the network.
According to data from Santiment , Dogecoin's transaction volume witnessed a remarkable surge, escalating from 1.22 billion to 9.20 billion within just 48 hours.
The overall velocity of Dogecoin (DOGE) has increased in addition to the spike in transaction volume. This implies that there has also been an increase in DOGE transfers recently. The increase in velocity might support DOGE's current rally even more.
Additionally, there are now a greater number of holders that are acquiring DOGE overall. This suggests that new players entering the market, rather than current holders acquiring more, are the main cause of the recent price spike.
The attention that new addresses are displaying demonstrates how well-liked DOGE is becoming in the cryptocurrency space. Notwithstanding these encouraging signs, there exist plausible impediments to DOGE's prospective expansion.
A lack of interest in the Dogecoin ecosystem as a whole is reflected in the declining activity on the Dogecoin network. Long-term consequences for DOGE may be severe if this pattern of falling interest continues.
The social noise surrounding the token may also affect DOGE's performance. Being a memecoin, social engagement has a big impact on how much the price of DOGE fluctuates.
According to recent data, there has been a noticeable decline in DOGE-related social volume during the last few days. Additionally, there has been a decrease in the token's weighted sentiment.
This suggests that there have been less favorable remarks regarding DOGE along with more negative ones. These events could make it more difficult for DOGE to mobilize.
March 2024, Cryptoniteuae