Dogecoin, originally a meme-based cryptocurrency, has managed to find its place in the crypto market. However, recent on-chain data suggests a decline in interest from large investors.
Data from IntoTheBlock reveals a significant drop in Dogecoin transactions worth $100,000 or more in recent months. Additionally, the number of daily transactions has been steadily decreasing since May.
Declining Dogecoin Whale Activity and Transaction Volume
Recent data reveals that Dogecoin is experiencing a decline in interest from big investors, known as whales. Whale transactions, defined as those above $100,000, have significantly dropped in the past 24 hours, totaling just 651 transactions. Throughout the week, there were only 4.85k whale transactions, indicating a substantial decrease compared to Dogecoin’s performance during the 2021 hype.
At its peak in 2021, Dogecoin saw as many as 39.3k whale transactions in a single week. Additionally, the overall transaction volume has also decreased. While Dogecoin witnessed a remarkable 8,220% surge in daily transactions, reaching 2.08 million on May 27, the number has now dwindled to only 38,000 transactions in the past 24 hours. Such a rapid decline in daily active addresses typically signals diminishing interest in the cryptocurrency.
DOGE market cap currently at $8.6 billion. Chart: TradingView.com
Dogecoin’s Ongoing Decline
Dogecoin has been facing a prolonged downward trend, despite maintaining its position as the 9th largest cryptocurrency by market capitalization. Currently, Dogecoin is trading at $0.06133, marking a 3.59% decline over the past month. Additionally, the cryptocurrency has experienced a significant decrease in trading volume, down by 22.24% in the last 24 hours.
Waning Enthusiasm for Dogecoin and Memes Coins
Meme cryptocurrencies rely heavily on hype and popularity rather than practical use, so a decrease in interest and activity can be problematic.
Recently, Shiba Inu has been gaining attention in the crypto world as it aims to become more than just a meme coin. In contrast, other meme coins like Dogecoin and Dogelon Mars have been struggling to attract investor interest. According to the on-chain analytics firm Santiment, discussions about meme coins on social media are currently at their lowest levels since 2020.
While the decline in transaction numbers is concerning, Dogecoin has overcome challenges in the past. There’s a possibility that a platform like X (formerly Twitter) might introduce Dogecoin payments, potentially sparking renewed interest and growth in Dogecoin.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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