Dogecoin: Fails to impress investors as DOGE continues to lose its position
According to CoinMarketCap, Dogecoin [DOGE] is currently the second largest cryptocurrency on the POW network, after Bitcoin [BTC]. This development comes after Ethereum [ETH] transitions to a proof-of-stake consensus mechanism.
With a market cap of $7.94 billion, DOGE is ahead of Ethereum Classic [ETC] with a market cap of $4.72 billion. Furthermore, Litecoin [LTC] has a market cap of $3.95 billion and Monero [XMR] has a market cap of $2.65 billion.
Meme Coins in Post-Consolidation
While several assets recorded subsequent temporary gains following the consolidation of the Ethereum mainnet (LDO and ETC), the top meme coins failed to register any significant positive price reactions.
According to data from CoinMarketCap, Shiba Inu [SHIB] has ignored the hype surrounding the Consolidation. Furthermore, the memecoin continued with its full-month price decline. As of this writing, SHIB has changed hands at $0.00001171, having dropped 37% in the past 30 days.
On the other hand, DOGE price rose 2% after Consolidation, data from CoinMarketCap shows. However, with the price pegged at $0.05933 at press time, the top meme coin has lost all post-Consolidation gains.
All smoke and no fire?
DOGE has seen a 2% drop in price over the past 24 hours. During the same period, the trading volume of this asset fell by 23%. In fact, since August 17, when the price of the meme coin fell, its daily trading volume increased accordingly.
Data from Santiment shows that DOGE's daily trading volume has dropped by more than 85% since then . The price of the asset also fell 35% during the same period.
With the consistent drop in the DOGE price over the last month, addresses that only trade meme assets have a similar downward path. Over a 30-day period, DOGE transactions daily active addresses have decreased by more than 300%. At press time, daily active addresses on the network stand at 28,500.
During the same period, the number of DOGE whale trades also decreased. According to data from Santiment, the number of daily whale trades exceeding $100,000 has decreased by 91%. Additionally, the number of daily whale trades above $1 million has also decreased by 91% over the past 30 days.
The DOGE network has been marked by stagnation over the last month. The age of the asset in use has decreased continuously over a period of 30 days. This shows that not many DOGE coins change addresses.
Furthermore, its average dollar-denominated investment age continues to grow, indicating growth in the coin's dormancy on the network. Without a change in the movement of these major indices, the longer the network stagnation lasts, the harder it is for the DOGE price to rise.
Sep 17, 2022