According to on-chain data, the Dogecoin network has been continuously busy lately, processing one million transactions every day.
Dogecoin Has Maintained Its High Usage Rate Lately
Data from IntoTheBlock, a market intelligence platform, indicates that DOGE has seen a lot of activity lately. In this case, the “Number of Transactions,” which tracks the total number of moves the blockchain makes, is the on-chain relevance metric.
A high value for this metric indicates that there are a lot of transfers occurring on the network at the moment among the users. This pattern suggests that investors are currently very interested in cryptocurrencies.
However, the low indicator suggests that DOGE is seeing common usage, which could indicate that only a few people are aware of the memecoin.
This chart, which covers the last month or so, illustrates the trend in the Dogecoin Number of Transactions:
The graph shows that there have been a lot of transactions on the Dogecoin network lately. The network has been processing at least a million moves daily since January 30.
This is remarkable, particularly in light of the network’s deficient activity before January 20. The chart makes this stark contrast very clear.
What does Dogecoin’s high activity now signify? Increased usage is generally a good sign for any cryptocurrency network because it indicates that either trading interest in the coin itself is high or another application (like DeFi) has gained traction on the blockchain.
Occasionally, assets experience a brief spike in activity during periods of volatile price action; investors find these movements exciting and join the network to place trades.
However, once things settle down, traders’ attention quickly moves on to more intriguing assets, and this activity soon declines. But this activity has yet to be present in Dogecoin’s recent activity.
The fact that DOGE has sustained a high transaction volume for a long time is encouraging because it suggests that the users utilizing the chain may be here to stay.
Over the past week, DOGE has experienced a surge of more than 8%.
Dogecoin has increased by more than 8% over the past week, suggesting that the high usage finally impacts the market, even though the high number of transactions initially did not affect the meme coin’s price.
Dogecoin is currently trading at about $0.087 after this recent spike. The performance of the coin over the last month is displayed in the chart below.
Chart from TradingView.com, featured image from Kanchanara on Unsplash.com, and IntoTheBlock.com
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