DOGE price started to give positive signals again in on-chain metrics after a long break. Memecoin’s 24-hour trading volume on exchanges is increasing, and most of the investments are in the hands of small investors. In addition, in a series of discussions centered around the tweets of DOGE supporter Mark Cuban in recent days, the features of DOGE as a payment tool have been highlighted by Cuban. We start with the data of the past months on the factors affecting the rise of Dogecoin, which we will examine under 3 different headings.
DOGE price has grown 120% since last month
With their on-chain activity and trading volumes on major exchanges, their thoughts on the analisdollarserin DOGE price are back on the positive side. There has been a serious increase in demand in the crypto money market since 2021, including different Layer-2 solutions with DeFi and NFTs, as well as Memecoin projects. During this period, Dogecoin, known as a “prank” cryptocurrency, gained serious momentum and most investors describe DOGE as a profitable investment. It points out that DOGE has been on the rise again for more than one time, after the recession period that started in April and May, which affected the market until August.
Meanwhile, DOGE has grown 120% since dropping to $0.159 on July 20, recording a local high of 0.35 on August 16. During this period, 24-hour transaction volume increased by 63% to reach $8.6 billion. Now, we take a look at 3 different reasons that analyst Jordan Finneseth thinks contributed to this rise. Let’s start with on-chain data…
What on-chain metrics say for DOGE price
Finneseth’s first point is that new entrants to the market can significantly increase the trading volume, demand and long-term viability of a cryptocurrency. On that matter, as seen in the following tweet from Chainalysis chief st Philip Gradwell, Dogecoin adoption is currently at its highest level since the 2017 bull market, and new users who have held the token for less than six months are now at a % of the circulating supply. He holds 25 of them.
Additionally, Gradwell’s follow-up tweet gives a deeper insight into the on-chain activity for Dogecoin, which had an average of 32,000 daily active users (DAU) in 2021. Some of Gradwell’s statements about DOGE were as follows:
DOGE had an average of 32,000 on-chain Daily Active Users (DAUs) in 2021, and this has moved along if they’re pricey. There’s an R-value of 0.7 so far between the percentage change in DAUs and the percentage change in DOGE price in 2021.
The amount of DOGE on the exchanges is increasing
The second point Finneseth points out is the increasing DOGE volume on major exchanges, including Coinbase. This increased volume, as seen in the following tweet from Pentoshi, a Twitter analyst, DOGE’s 24-hour trading volume on Coinbase averaged $200 million per day over the previous week. Meanwhile, this surge from the largest US fiat launcher Coinbase and traders could be a sign that individual investors are piling back on DOGE and possibly other tokens under $1.
Finally, Mark Cuban’s statements about DOGE
Cryptocoin. com, a series of tweets by Mark Cuban about Dogecoin recently revealed how much demand DOGE received as a payment tool. According to Cuban’s statements, customers of the companydollarseries prefer to pay with 95% DOGE. Cuban also described DOGE as “the people’s currency”.
After these tweets about DOGE, Mark Cuban’s promotion of the memecoin project angered some Bitcoin supporters. Some comments centered around the implication that “buy bitcoin and stop DOGE’s “unnecessary” rise, it’s just a “joke” cryptocurrency, the limits of its supply are unclear and it’s not good for a currency.
Cuban responded to these comments as follows:
It does not highlight DOGE. I sell the products of my company and the service of my company. Where we allow people to pay in ANY crypto, 95% of sales are in DOGE. Customers CHOOSE to use DOGE. We can discuss anything for BTC, but right now DOGE is the way people pay.
Finally, the VORTECS score, an algorithmic comparison of past and current market conditions derived from a combination of data points such as recent price movements and Twitter activity, climbed to the green in August and approximately 24 hours before its price rose 44% in the next six days, on August 9 It reached 72. Also, the comeback of its promotion by popular DOGE supporters and increased 24-hour trading volumes resulted in Dogecoin’s second bull rally in 2021 to strengthen.