Chain data show that activity on the Dogecoin network has recently witnessed a significant drop. Here is what it could mean for the Doge price.
Dogecoin activity measures have recently plunged
As analyst Ali Martinez pointed out in a new job On X, some Dogecoin indicators linked to network activity have returned to the lowest level in a few months.
There are three relevance measurements here: the number of whale transactions, the volume of transactions and daily active addresses. The first of them, the Number of whale transactionsKeep a trace of the total number of DOGE transfers with more than a million dollars.
Transactions of this size generally belong to the whale entities, so that the indicator can be supposed to represent the activity in which the gigantic markets of the market participate.
THE Transaction volumeThe second indicator, also mainly talks to us about the activity of these investors, because it measures the total quantity of Dogecoin which is involved in transfers on the network. The transfers of small investors are naturally included in this value, but as whale transactions tend to be quite significant, they drown them from metric data.
The final indicator, the Daily active addressesis that to be monitored to find out the activity level of regular investors. This metric measures the number of addresses which participate in at least one transaction on the network each day, whether as an explore or receiver.
Although the whales are large, their number tends to be much lower than retail investors, so that daily active addresses, which promote the number of addresses, bring out the behavior of small entities.
Now here is the graph shared by the analyst, which shows the trend of these Dogecoin indicators on the channel in recent months:
Looks like all three of these metrics have witnessed a decline in recent weeks | Source: @ali_charts on X
As displayed in the above graph, these three indicators have recently dropped to relatively low levels, which means that activity at all levels has decreased for Dogecoin.
Currently, whales are only 66 daily transactions and less than 60,000 unique addresses become active on the blockchain. Martinez noted that such a low level of activity has not been seen since October of last year.
Usually Dogecoin requires high participation of users, in particular from whales, in order to set up a significant movement. With the indicators linked to the activity sitting at the stockings, it is possible that the price of the memes piece continues to fight in the coming days.
The measures may be to keep an eye on it, because it often takes only news to bring investors to rush to the memes piece.
Mediating prices
Dogecoin plunged the sides of the rest of the Altcoin market during the last day, because its price slipped less than $ 0.23 after a decrease of 5.7%.
The price of the coin seems to have been going down recently | Source: DOGEUSDT on TradingView
Dall-e star image, Santiment.net, TradingView.com graphic