On-chain data shows that Dogecoin is no longer the dominant meme coin in terms of number of weekly active traders. There is a coin on it.
Dogecoin has been overtaken in number of traders by another Memecoin
According to data from market intelligence platforms: Into the BlockDOG and DEGEN are two assets that have surpassed the original meme-based cryptocurrency in terms of number of day traders.
Here, “trader” refers to an investor who holds coins within 30 days. These investors typically act as active traders in the market and therefore tend to move their coins frequently. They are definitely not HODLers in their segment.
When the number of these traders increases for any asset, it potentially means that the coin is attracting new interest. Rally-like price action is only sustainable with ever-increasing fuel flowing in, so the growing number of traders is probably a bullish sign in this direction.
On the other hand, a falling indicator means that the cryptocurrency has matured beyond the 30-day threshold, either by losing interest in it or deciding to hold on to it for the long term. But in any case, a decline in the indicator means that there is a shortage of new talent in the market.
There is now a chart showing trends in the number of traders for the various meme coins in the sector.
The data for the number of traders for meme-based tokens over the past couple of years | Source: IntoTheBlock on X
As shown in the chart, Dogecoin (blue) has consistently held the top spot in terms of number of traders, which makes sense since DOGE has generally been the most popular meme coin, as evidenced by its market capitalization.
Hype and excitement are usually the biggest drivers that attract users to cryptocurrencies. However, DOGE appears to be trending downward on this indicator recently.
“DOGE has dominated almost every metric in the memecoin market for a long time, but it appears to be losing some of its dominance,” the analytics firm says. Therefore, the interest on your coins may no longer be at the same level.
As for which meme coins have overtaken cryptocurrencies so far, IntoTheBlock says, “DEGEN currently leads with 129,000 active traders, followed by DOG with 126,000.”
Given the high interest in these memecoins, they are likely to experience some volatility in the near future as all traders move simultaneously.
In theory, this volatility could take these coins in either direction, but as the Intelligence Platform explains, “a strong increase in traders typically coincides with bullish momentum.”
doji price
Dogecoin dipped below the $0.17 level last week, but the coin has bounced back, currently trading just below $0.20.
Looks like the price of the memecoin has gone stale since its recovery push | Source: DOGEUSD on TradingView
Kanchanara from Unsplash.com, featured image from IntoTheBlock.com, chart from TradingView.com
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