Dogecoin became one of the biggest success stories of the year as it went from being a “joke” coin to one of the most popular currencies in the cryptocurrency sector. Mainly, on-chain activity, increased trading volumes on major exchanges, and increased attention from major influencers played a critical role in the cryptocurrency journey.
The same was highlighted in a series of tweets by Philip Gradwell, Chief Economist at Chainalysis. He emphasized the fact that Doge adoption remained at the highest level since the 2017 bull market. New users who have had the token for less than six months currently own 25% of the circulating supply.
On-chain, Doge is being adopted by new investors at a level not seen since the bull market in late 2017, and new investors have increased their share of the offering from 9% in July 2020 to 25% in August 2021. pic.twitter.com/W782qNhyMW
– Philip Gradwell (@philip_gradwell) August 16, 2021
Continuing the same thread, Gradwell provided a deeper insight into on-chain activity for the trending altcoin. An average of 32,000 daily active users (DAU) was registered in 2021.
“Doge has had an average of 32,000 daily active users (DAU) on the chain in 2021, and this has moved with the price. There is an R-value of 0.7 between the percentage change in DAU and the percentage change in the price of DOGE in 2021 so far. “
With a significant increase in DOGE price action, many within or even outside the community would signal a “pump and dump” scenario. This is what the analyst i had to say about the same,
“Correlation is not causation: spikes in active users and price match Doge-related social media, from Reddit activity to Elon Musk’s tweets. But an increase in chain activity around these events indicates the strength of the response. “
While many would argue otherwise, it should be noted that trading volume also saw an increase.
I just saw the $ DOGE volume on Coinbase last week and OMG
There have been some massive $ 200 million a day buyers of Doge in volume just in CB (Fiat direct on ramp) starting a week ago.
While I won’t change it to $ 1 +, I think it will get there. My goal is .40-.45 pic.twitter.com/VBtdAWtdjk
– Pentoshi 🐧 won’t text you (@ Pentosh1) August 15, 2021
DOGE was trading at the $ 0.33 mark at press time, down 3% in 24 hours. The coin still had a long way to go to hit the $ 1 benchmark, to say the least. Lastly, big influencers like Mark Cuban, Elon Musk, certainly played a role in promoting their preferred token.
Billionaire investor Cuban seamlessly combined the scenarios around DOGE in a tweet.
The point about DOGE that people miss is that DOGE’s imperfections and simplicity are its greatest strengths. You can only use it to do 2 things: Spend it or HODL. Both are easy to understand. And it is cheap to buy. Which makes it a community that anyone can join and enjoy.
– Mark Cuban (@mcuban) August 15, 2021
This is a machine translation of our English version.
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