Dogecoin [DOGE] is experiencing a significant increase in network activity, suggesting that its adoption potential could increase. However, decreasing transaction volumes indicate that some areas need improvement.
While address statistics are increasing, the number of daily transactions is decreasing, which reveals that broader user engagement has not yet translated into active usage.
“Increasing address data indicates that users are joining the ecosystem, but utility metrics need to accelerate for sustainable growth,” he explained.
Dogecoin is seeing record levels of address activity with expectations of rising adoption, but a decline in transaction volumes, highlighting critical areas for future growth.
Recent analysis has revealed a significant increase in Dogecoin address activity. There was a 102.40% increase in new addresses, a 111.32% increase in active addresses, and a 155.46% increase in zero-balance addresses. These high rates indicate a significant increase in user engagement and a growing community around the memecoin.
The increased activity highlights not only a healthy influx of new users, but also active interactions among existing users. The growth in active addresses, in particular, is a promising indicator of Dogecoin’s growing presence in the broader cryptocurrency market.
However, despite the strong increase in address data, Dogecoin’s transaction activity is showing an opposing trend. The number of daily transactions has fallen below 40,000, raising some important questions about Dogecoin’s daily utility. While the participation of new users is encouraging, the lack of transaction volume suggests that staying actively and meaningfully engaged with the cryptocurrency is still a challenge.
The market is quite bullish on Dogecoin, with Open Interest (OI) up 6.38% over the last 24 hours, reaching $2.05 billion. This increase reflects traders’ preparations for potential upward price movements and confidence in future performance.
Rising Open Interests coupled with rising network engagement is improving the short-term outlook for Dogecoin. While trading volumes are lagging behind, optimism continues to grow among traders.
DOGE’s recent price action is showing signs of a potential recovery. The RSI (Relative Strength Index) is currently at 37.99, indicating that it is close to oversold territory and could generally be a sign of an upward price correction. Additionally, DOGE prices are fluctuating within the Bollinger Bands, highlighting the regular volatility in the market. Breaking through the key resistance level at $0.384 would be a critical step for the bullish momentum to continue in the upcoming periods.