Dogecoin Soars 17% To Break $0.21 As Volume Explodes

In the last 24 hours, Dogecoin has surged by 17%, reaching over $0.21 for the first time. Notably, there’s been a substantial rise in transaction activity on its network, according to blockchain data.

Dogecoin Beats Market With 17% Rally In The Last Day

In the past day, many leading cryptocurrencies have remained fairly stable with minimal gains or losses. However, Dogecoin, the pioneer of meme coins, has bucked this trend and surged forward with substantial growth.

The below chart shows what the asset’s performance has looked like during the last few days:

Dogecoin Soars 17% To Break $0.21 As Volume Explodes

Dogecoin experienced a significant gain of over 17% in just the past 24 hours during this recent rally, surpassing the $0.21 mark. Out of the top 100 cryptocurrencies based on market capitalization, only Bitcoin Cash (BCH) managed to achieve similar returns within the same timeframe.

In the last week, DOGE has outperformed BCH with a return of over 40%, compared to BCH‘s 33% return.

The explanation for the impressive gains of these two specific assets could be due to Coinbase’s upcoming addition of futures contracts for them, starting April 1st. Notably, Litecoin (LTC) is scheduled for a listing on the same date, but its performance has been significantly weaker in comparison.

Based on market value, Dogecoin ranks eighth among all coins in the crypto market, as illustrated in the following table:

Dogecoin Soars 17% To Break $0.21 As Volume Explodes

Based on the data from the table, the difference between Dogecoin’s position and USDC in seventh place is relatively small at present. If Dogecoin continues to gain momentum, there’s a chance it could surpass USDC and take its place.

DOGE Transaction Volume Has Observed A Sharp Increase Recently

A significant increase in Dogecoin’s transaction volume could be a sign that the widespread rumors of an imminent rally for this cryptocurrency are valid. According to a user on X and data from the analytics firm Santiment, Dogecoin’s transaction volume has surged recently.

“The ‘Transaction Volume’ measures the aggregate value in USD of all cryptocurrency tokens that have been transferred or traded on the blockchain during the last 24 hours.”

With a substantial value for this metric, it signifies that significant transactions are taking place on the network at present. This pattern indicates elevated interest among users in trading the asset currently.

An alternate interpretation: If the indicator reads low numbers, it may indicate that current enthusiasm for the cryptocurrency, in terms of its value as an investment and its network usage, is relatively subdued.

Now, here is a chart that shows the trend in the Dogecoin Transaction Volume over the past year:

Dogecoin Soars 17% To Break $0.21 As Volume Explodes

The transaction volume for Dogecoin, as shown in the graph, has significantly increased in recent times, coinciding with its latest price surge.

An increasing number of participants in a rally is typically a good indicator of its durability, since it reflects growing enthusiasm for the asset and potentially more resources being invested.

It’s important to note that both buying and selling large quantities can impact this measure. Consequently, a significant sell-off would show up as a notable increase in the data. However, while substantial trading volumes are typically necessary for rallies to persist, they don’t necessarily indicate continued growth, as the character of such activity can be ambiguous.

Read More

2024-03-28 17:10