According to on-chain data, the Dogecoin network has been seeing consistently high usage recently as the coin is handling one million movements per day.
Dogecoin continues to see high usage recently
According to data from market intelligence platforms: Into the Block, DOGE has observed a large amount of activity recently. The on-chain relevance metric here is “transaction count,” which tracks the total volume of movements processed on the blockchain.
A high value for this metric means that users are currently transmitting a lot on the network. This trend means that interest in cryptocurrencies is currently high among investors.
On the other hand, low indicators mean that DOGE is seeing low levels of usage, which is a potential sign that not many people are paying attention to memecoins.
Now here is a chart showing the trend in the number of Dogecoin transactions over the past month:
The value of the metric seems to have been relatively high in recent days | Source: IntoTheBlock on X
As can be seen from the graph, the Dogecoin network has been observing a high number of transactions recently. Since January 30, the network has been processing at least 1 million movements every day.
This is especially impressive considering that network activity was very low prior to January 20th. This stark contrast is easy to see on the chart.
So what does this high activity in Dogecoin mean? High usage on any cryptocurrency network is usually a constructive signal. This is either because there is high trading interest in the coin itself or because other applications on the blockchain (e.g. DeFi) have become popular.
Sometimes, assets may see brief bursts of activity as volatile price movements occur. Investors find such movements interesting, so they join the network and make some trades.
However, once the dust settles, this activity quickly stops as traders’ attention shifts to more interesting assets. However, Dogecoin’s recent activity is not of this type.
It is a bullish sign that DOGE has maintained a high transaction count for an extended period of time. Because this means that users currently using the chain can potentially stay here.
DOGE has enjoyed a surge of over 8% over the past week.
Initially, high transaction numbers did not have a noticeable impact on the memecoin price, but high usage may finally be playing a role in the market, as we have seen Dogecoin rise by over 8% in the past week.
Following this surge, Dogecoin is trading at the $0.087 level. The chart below shows the coin’s performance over the past month.
Looks like DOGE has been climbing up recently | Source: DOGEUSD on TradingView
Kanchanara from Unsplash.com, featured image from IntoTheBlock.com, chart from TradingView.com