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On-chain data shows the Dogecoin network has seen consistently high usage recently, as the coin has been handling a million moves a day.
Dogecoin Has Continued To Observe High Usage Recently
According to data from the market intelligence platform IntoTheBlock, DOGE has observed a high amount of activity recently. The on-chain relevance metric here is the “Number of Transactions,” which keeps track of the total amount of moves that address on the blockchain are making.
When the value of this metric is high, it means that the users are making many transfers on the network right now. Such a trend implies interest in cryptocurrency is high among investors currently.
On the other hand, the low indicator implies DOGE is witnessing a low level of usage, a potential sign that not many are paying attention to the memecoin.
Now, here is a chart that shows the trend in the Dogecoin Number of Transactions over the past month or so:
As is apparent from the graph, the Dogecoin network has been observing a high Number of Transactions recently. Since the 30th of January, the network has been handling at least a million moves daily.
This is impressive, especially considering the network had seen very low activity before 20th January. This sharp contrast is easily visible in the chart.
Now, what does this high activity mean for Dogecoin? Well, for any cryptocurrency network, high usage is generally a constructive signal, as it means that either trading interest in the coin itself is high or some other application has become popular on the blockchain (like DeFi).
Sometimes, assets see a burst of activity for a short while as some volatile price action occurs; since investors find such moves exciting, they hop onto the network to make some trades.
Once things calm down, though, this activity quickly drops off as trader attention shifts to more interesting assets. However, the recent activity for Dogecoin has not been the one of this type.
It’s an optimistic sign that DOGE has maintained its high transaction count for such an extended period, as it means that these users currently using the chain are potentially here to stay.
DOGE Has Enjoyed A Surge Of More Than 8% Over The Past Week
While the high Number of Transactions initially had no apparent effect on the memecoin’s price, the high usage may finally be playing a role in the market as Dogecoin has seen an uplift of over 8% in the last week.
Following this surge, Dogecoin is trading around the $0.087 level. The chart below shows how the coin has performed over the past month.
Featured image from Kanchanara on Unsplash.com, IntoTheBlock.com, chart from TradingView.com
