In a noteworthy development, the Dogecoin (DOGE) network has eclipsed the 5 million addresses milestone, all holding a balance, fueled by a robust 16% surge in price. This surge comes against the backdrop of an upward trajectory in cryptocurrency adoption witnessed over the past few weeks.
As per insights from on-chain analytics firm IntoTheBlock, the Dogecoin network exceeded the five million addresses mark on November 27, marking a substantial surge in this metric. Simultaneously, the number of active addresses on the network has more than doubled, reaching 168,000, the highest since March of the preceding year.
This surge aligns with an increased number of confirmed transactions on the Dogecoin network, corresponding to a 16% rise in the cryptocurrency’s price over the last 30 days, currently trading at $0.08 per token.
The surge in addresses with balances was partially attributed to a substantial movement of older DOGE from dormant wallets, hinting at a potential upward movement in the price of this meme-inspired cryptocurrency.
In contrast to the performance of other major digital assets this year, Dogecoin has experienced a modest rise of approximately 14%, lagging behind the flagship cryptocurrency Bitcoin, which has witnessed a remarkable uptrend of nearly 130% year-to-date.
Recent data also indicates a notable surge of around 40% in the open interest of Dogecoin futures contracts. This surge suggests an increased risk appetite among traders, a trend historically associated with local price peaks in the cryptocurrency market. However, it is crucial to note that a sudden or excessively high spike in open interest can also serve as a bearish indicator, potentially signaling an imminent shift in market trends as traders may initiate short positions.
Historically, Dogecoin has been prone to significant rallies over short periods. In 2021, during the cryptocurrency’s massive 10,000% price surge, search interest for Dogecoin skyrocketed from an average of 135,000 monthly searches in April 2020 to an impressive 16.5 million in April 2021.
Originally created as a joke in 2013, Dogecoin’s community is renowned for engaging in philanthropic endeavors, including supporting charitable organizations. Notably, in 2014, Dogecoin made headlines by raising over $25,000 worth of DOGE to facilitate the Jamaican bobsleigh team’s participation in the Winter Olympics in Sochi.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading cryptoassets carries a risk of financial loss.