Data shows that Dogecoin adoption has accelerated to its fastest pace, as 413,800 DOGE addresses have appeared in the last two weeks.
Dogecoin Non-Zero Wallets Have Spiked Up Recently
In a new post on X, the on-chain analytics firm Santiment talked about the trend occurring in the Total Amount of Holders metric for Dogecoin. This indicator keeps track of the total number of DOGE wallets carrying some balance right now.
When the value of this metric goes up, it can be for a couple of reasons. Existing asset investors may open up new addresses to spread out their holdings, which would naturally affect the indicator’s value.
Something more likely to be behind a rise in the indicator, though, is adoption. New investors coming into the network would open up fresh addresses and add balance to them, thus raising the Total Number of Holders.
As such, an uptrend in the indicator can provide hints about how cryptocurrency adoption is coming along. On the other hand, a decline can imply that users are exiting the cryptocurrency as they are cleaning out their wallets.
Now, here is a chart that shows the trend in the Dogecoin Total Amount of Holders over the past year:
Looks like the value of the metric has shot up in recent days | Source: Santiment on X
As displayed in the above graph, the Dogecoin network has recently observed a rapid increase in the Total Amount of Holders. In particular, the number of addresses with a non-zero balance has increased by 413,800 over the last couple of weeks.
This rise, which represents a growth of about 7.2% for the indicator, is the fastest in the memecoin’s entire history so far. This sharp surge has interestingly come for DOGE as its price has been struggling sideways following a drawdown earlier.
Generally, investors find sharp price action like rallies exciting so that new hands may flood in during such periods. That has not been the case for Dogecoin recently, yet its adoption has extraordinarily accelerated.
Adoption is usually a constructive sign for any cryptocurrency, as a larger user base can provide a stronger foundation for sustainable price moves.
Any positive effects that may arise from the latest rise in the Total Amount of Holders for Dogecoin, though, might only be visible in the long-term.
DOGE Price
As mentioned earlier, Dogecoin has been struggling recently as its price has mostly been stuck in consolidation. The below chart shows how the memecoin has performed over the past month.
The price of the asset appears to have been quite stale recently | Source: DOGEUSD on TradingView
At present, the asset is floating around the $0.0785 mark. DOGE’s recent poor performance has meant that it is at risk of losing its position inside the top 10 cryptocurrencies by market cap list, for which it is battling Chainlink (LINK) right now.
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net
