Key Insights:

• Dogecoin’s trading volume jumps by 53%, while daily active addresses see a 32% spike, increasing network engagement.
• Despite a slight price dip, 73% of Dogecoin holders remain profitable, and long-term support for the cryptocurrency remains strong.
• On-chain data reveals more Dogecoin moving off exchanges into private wallets, indicating potential future bullish sentiment among DOGE traders.

Dogecoin (DOGE) has witnessed a noticeable increase in activity over the past 24 hours. Data from CoinMarketCap shows that trading volume for Dogecoin has surged by 53% during this time, indicating a rise in transactions across the market.

DOGE/USD 1-day price chart (Source: CoinMarketCap)

At the same time, IntoTheBlock data highlights an increase in on-chain activity, as the number of daily active addresses has spiked to 55,440. This marks a 32% rise compared to the 42,000 active addresses recorded the previous day. 

While the number of active addresses has dipped slightly since this peak, the overall trend remains positive, suggesting a growing interest in Dogecoin despite a largely bearish market environment.

Increased On-Chain Activity and New Addresses

In addition to the rise in daily active addresses, the number of new addresses being created on the Dogecoin blockchain has also seen an uptick. According to IntoTheBlock, the number of new addresses increased by 11.41% over the past week, while total active addresses increased by 6.22% during the same period.

These metrics indicate that more users are engaging with the Dogecoin network by initiating transactions or creating new wallets. The increase in new addresses could point to a fresh wave of participants entering the Dogecoin ecosystem, which may further contribute to higher on-chain activity. This could be a positive signal for the cryptocurrency’s future performance, reflecting sustained interest from both new and existing users.

Holder Profitability and Market Distribution

Despite the broader bearish sentiment in the cryptocurrency market, many Dogecoin holders remain profitable. Current data shows that 73% of Dogecoin holders are in profit, while 20% are at a loss. This is coupled with the fact that large holders, often referred to as “whales,” control 62% of the total Dogecoin supply. Additionally, 67% of Dogecoin holders have kept their tokens for over a year, suggesting strong long-term support.

DOGE Summary (Source: IntoTheBlock)

In addition, Dogecoin maintains a strong correlation with Bitcoin, with a current correlation of 0.97. This close relationship means that Dogecoin’s price movements may continue to follow Bitcoin’s overall market trends, which could influence its future performance.

This long-term holding behavior, along with the profitability of a majority of holders, could provide stability to the market and contribute to a potential price surge. Large holders are often seen as stabilizing forces in the market, as they are less likely to sell during periods of volatility. This long-term commitment might indicate confidence in Dogecoin’s future performance.

Price and Volume Fluctuations

Though trading volume has increased significantly, Dogecoin’s price has remained relatively stable with minor fluctuations. As of the latest reports, Dogecoin is trading at $0.1002, reflecting a slight decline of 5.05% over the past 24 hours. Earlier, the price had reached $0.104 but reversed course, indicating that while buying pressure initially drove the price up, a minor selloff followed.

The increase in trading volume may be due to buying and selling activity. Reports from IntoTheBlock reveal that there has been a cumulative negative net flow of $14.5 million worth of Dogecoin on exchanges over the past week. This suggests that more Dogecoin tokens have been moved from exchanges to private wallets than sold on exchanges, reflecting a continued bullish sentiment among some traders despite the price dip.

While on-chain signals have shown bearish trends, such as net network growth of 0.09% and an “In the Money” indicator at -0.59%, exchange signals appear more positive. IntoTheBlock reports a smart price reading of -0.02%, considered bullish, and a bid-ask volume imbalance of 3.03%, suggesting momentum may be building on exchanges.

DOGE Signals (Source: IntoTheBlock)

According to DefiLlama, Dogecoin’s Total Value Locked (TVL) in decentralized finance (DeFi) applications is currently at $3.7 million, with daily fees amounting to $1,824. These figures reflect continued usage of the Dogecoin network, particularly in DeFi, where users increasingly engage with decentralized applications built on the blockchain.