On-chain data shows the number of active addresses on the Dogecoin network has shot up recently. Here’s what this could mean for the memecoin.
Dogecoin Active Addresses Have Risen To 73,000
As highlighted by analyst Ali Martinez in a new post on X, Dogecoin has seen a surge in Active Addresses recently. This on-chain indicator keeps track of the total amount of addresses that are coming online on the blockchain every day. An address is said to be online when it participates in some kind of transaction activity, whether as a sender or receiver. Thus, the Active Addresses metric measures the daily number of DOGE wallets taking part in transfers.
When the value of this indicator rises, it means more investors are using the network every day. Such a trend suggests users are being attracted to the cryptocurrency.
On the other hand, the indicator going down can imply traders are losing interest in the blockchain as fewer of them are participating in network transaction activity.
Now, here is the chart shared by Martinez that shows the trend in the Dogecoin Active Addresses over the last few days:
As displayed in the above graph, the Active Addresses indicator has witnessed a surge for Dogecoin over the past week. More specifically, the metric has gone from 57,000 to 73,000 inside this window, representing a notable increase of 28%.
Generally, higher user participation can make the cryptocurrency’s price more volatile, as more users potentially mean fuel for larger price moves. As such, considering the uptick in interest that DOGE has witnessed recently, it’s possible that its price could show sharp action in the near future. Though, for now, the memecoin is continuing to show consolidation.
DOGE Has Been Stuck In Sideways Movement
Dogecoin has displayed stale price action since the crash at the start of February, with all deviations eventually collapsing back into the same consolidation range. As the below chart shows, the memecoin is currently trading around $0.0926, which is about where the memecoin has returned time and again during the phase of sideways movement.
The consolidation isn’t something unique to Dogecoin; the digital asset sector as a whole has struggled to find a direction in the same period. Bitcoin, for example, is still trading below the $70,000 level. The market has made some attempts at recovery already, but each one has fizzled out. A reason behind this prolonged consolidation is the uncertainty due to the war situation in Iran.
