Dogecoin (DOGE), the top-ranking meme coin in the crypto market, seems to be fast losing its appeal to digital assets investors.
According to data from the renowned data analytics firm IntoTheBlock, Dogecoin’s average daily transactions, measured on a seven-day scale, have significantly decreased.
Specifically, IntoTheBlock disclosed that Dogecoin’s seven-day average for daily transactions now stands at 37,300. The tracking firm stated the figure marks a substantial drop from its peak in June. At the time, DOGE exceeded 2.1 million transactions. This decline shows a crash of 98.2%.
Dogecoin's 7-day average for daily transactions now sits at 37.3k— a sharp decline from its June high of over 2.1M and a secondary spike of 616k in July. Will we witness another surge in $DOGE activity soon? pic.twitter.com/RTJbAtIBJ2
— IntoTheBlock (@intotheblock) October 11, 2023
Dogecoin Declining Activity
Furthermore, the firm noted a secondary spike in July, where DOGE saw daily transactions surpassing 616,000. Emphatically, the current 37.3k average suggests less activity on the Dogecoin network and fewer people using Dogecoin to make transactions.
Additionally, accompanying IntoTheBlock’s tweet was a chart displaying the trajectory of Dogecoin trades over the past three months. The chart depicted a consistent decline in activity since the last peak observed in August.
Given DOGE’s current level, IntoTheBlock pondered about the feasibility of another surge in Dogecoin activity in the near future.
Possible Factors
Notably, one of the few possible explanations for the declining DOGE activity is that the frenzy surrounding Dogecoin has gradually faded. While Dogecoin attained peak popularity in 2021, like most other cryptocurrencies, its market value has crashed over 92% since the $0.7376 all-time high.
Meanwhile, another possibility is that the Dogecoin network is not well-suited for making transactions as it uses a Proof-of-Work (PoW) consensus. For context, PoW implies that the Dogecoin network consumes more energy and resources to process transactions.
However, despite Dogecoin’s declining network activity, CoinMarketCap data suggests that the digital asset ranks among the top trendy tokens. Moreover, DOGE maintains a position nine in the ranking of the most valuable cryptocurrencies with over $8 billion valuation.
Interestingly, DOGE’s valuation is more than double that of its closest rival in the meme-themed cryptocurrency realm.