The number of unique active addresses on Dogecoin’s blockchain has increased by 97% in the past two months.
Summary
Unique addresses on the Dogecoin blockchain increase
The lowest peak in 2022 was on 21 May when they fell well below 50,000, while the highest peak occurred on 28 July with more than 98,000.
On the other hand, the number of daily transactions also increased, from 18,000 on 21 May to more than 87,000 on 20 July.
It is worth adding that in the days following these two peaks the numbers dropped a bit, so that yesterday, for example, there were fewer than 65,000 active addresses and just over 41,000 transactions. Nevertheless, these are numbers well above the lowest peaks in May.
Extending the analysis to the last twelve months reveals that the July transaction peak was by far the largest, while for active addresses there was an anomalous peak on 10 March. Ignoring that anomalous peak, July saw the highest numbers in the past twelve months.
However, new all-time highs were not reached because the spring 2021 peaks were not exceeded.
According to some, this increase in Dogecoin usage over the past thirty days could also indicate the possibility of a rise in the price of DOGE.
In fact, although it has already risen by 8% in the past seven days, the current value is in line with that of a month ago, while Bitcoin’s is 21% higher and Ethereum’s as much as 55% higher.
It should also be noted that the current price of DOGE is still 90% lower than its peak in May 2021.
To be fair, trading volumes have also been declining in recent times, so in order to consider a significant uptick, there would also need to be signs of increased interest from the markets, which is currently not there.
Analysis of on-chain data
Not least because the average amount of individual transactions is falling, which has been steadily declining since May. So transactions are increasing, but amounts are decreasing. The on-chain signals therefore are not all bullish.
Meanwhile, the Japanese crypto exchange Bitbank has listed DOGE, as well as DOT (Polkadot), indicating that perhaps there is beginning to be some renewed interest in this cryptocurrency.
Therefore, the conditions for a possible price rise are there, but right now the buying pressure is still too low to trigger it.
