- Dogecoin witnesses an 8,220% surge in activity.
- The rise in activity hasn’t affected the price of DOGE.
- DOGE transactions peaked at 2.08 million last Saturday.
Dogecoin (DOGE) has experienced an exceptional and unexpected surge in its daily transaction activity this month. The cryptocurrency, which gained popularity due to its meme-inspired origins and dedicated community, observed an astounding 8,220% rise in daily transactions.
The number of transactions skyrocketed from around 25,000 to a peak of 2.08 million last Saturday. This significant surge in activity has led to a sense of bewilderment among investors and traders who are trying to understand the reasons behind this sudden spike.
Dogecoin community astonished by the remarkable spike
Data from IntoTheBlock revealed the surge in Dogecoin transactions. Despite the dramatic increase in transactional activity, Dogecoin’s recent price performance tells a different story. Over the past 20 days, the meme coin has exhibited a sideways movement, characterized by low trading volumes and liquidity.
In the last three months, Dogecoin has experienced a consistent downward trend, resulting in a 54% decline from its previous peak. This contrast between heightened activity and declining prices raises questions about the underlying factors influencing Dogecoin’s market dynamics.
According to CoinMarketCap data, DOGE is trading at $0.07162, with a 1% spike in value over the last 24 hours. Several factors appear to be impeding the upward movement of Dogecoin. Firstly, selling pressure from addresses holding smaller amounts of DOGE could be contributing to the stagnant price.
Additionally, negative sentiment among investors may be playing a role in inhibiting price growth. Lastly, the need for sustained trading volume is crucial for driving momentum, and the absence of significant trading activity could be hindering Dogecoin’s upward trajectory.
