Data shows Dogecoin has experienced a major boost in on-chain metrics recently, which could be bullish for the meme coin’s price.
Dogecoin Whale Transactions And Active Addresses Have Appeared Recently
According to data from an on-chain analytics company Holy, some DOGE on-chain metrics are at a two-month high now. The relevant indicators here are the number of whale transactions and active addresses per day.
The “whale transaction count” measures the total number of Dogecoin transfers made in blocks worth at least $100,000. When the value of this metric is high, it means that whales are actively trading the asset today.
Since the transactions of this cohort are quite large in size, they can potentially cause the price to change noticeably. For this reason, many things happening at the same time can cause more volatility for DOGE.
The other metric of interest here, “daily active addresses,” simply tracks the total number of addresses that engage in some transactional activity on the network on a given day. Metrics count receivers and senders for this calculation.
When this indicator has a high value, it means that many investors are transacting on the blockchain every day. The trend shows that user interest in DOGE is currently high.
Now, here is a chart showing the trends in two Dogecoin chain indicators over the past month:
Looks like both these metrics have observed some sharp increase in recent days | Source: Santiment on Twitter
As shown in the chart above, the number of Dogecoin whale transactions and daily active addresses has reached a fairly high value in the past few days. In total, there were 523 whale transactions in the past day, the highest level since November 27, more than two months ago.
Daily active addresses have reached around 86,400 in the last few days, which is the biggest two days observed between November 2nd and 3rd, almost three months ago.
This increase in on-chain activity coincides with the news that Elon Musk plans to add cryptocurrency payments to Twitter. Although it is currently unclear whether Dogecoin will find its way to the platform (since it seems that only fiat currencies are added first), the price of DOGE still responds by increasing.
The current high on-chain activity has proven to be bullish in the past few days, but there is no guarantee that the indicator will continue at the same level moving forward. Also, even if the metrics remain up, there is a possibility that the resulting volatility will not be bullish, as the same signs are also seen when investors are selling.
DOGE price
At the time of writing, Dogecoin is trading around $0.0915, up 8% over the past week.
DOGE has surged | Source: DOGEUSD on TradingView
Featured images from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net