Dogecoin has been caught in a whirlwind of adoption, especially when it comes to new investors. Crypto analyst Ali Martinez shared on X that the meme coin has seen a major rise in the number of new daily addresses. In the space of a week, new addresses being registered on the Dogecoin network daily saw a 72% jump. This suggests increased adoption that could mean an influx of new money into the meme coin from here.
A 72% Jump In One Week
As the crypto market ushered in the new month of October, the Dogecoin network was averaging around 11,500 new addresses daily, which corresponded with its figures from the previous week. However, as the month of September drew to a close, there was a major jump in activity on the network.
On Monday, September 20, which was the last day of the month, the new addresses registered on the network in a single day suddenly jumped to 19,630. This corresponded to a 72.29% increase in the new daily address, coinciding with a rise in the Dogecoin price.
The daily new addresses is not the only metric that saw a jump as the Dogecoin daily active addresses also joined in on the action. According to data from the on-chain aggregator, IntoTheBlock, daily active addresses rose to 58,180 from the low of 43,860 that was recorded last week. This translated to a 37.23% increase in the active addresses in a 7-day period.
However, there was a significant increase in the number of Dogecoin non-zero addresses, which could be bearish. Non-zero addresses refer to the number of addresses which no longer hold any DOGE tokens. Therefore, this could mean that they have sold all their coins or consolidated them into other wallets. Nevertheless, there was a 46.25% increase in the number of non-zero addresses in the 7-day period.
What’s Driving The Surge For Dogecoin?
The surge in the Dogecoin metrics could be explained by the bullishness that has engulfed the market recently. The month of October, and the last quarter of the year, has generally been good for the Dogecoin price. Thus, expectations are that DOGE would continue this trend and see rapid growth this month.
However, things do not seem to be going as planned as the Dogecoin price has already fallen more than 5% to kick off the new month. This could suggest that the meme coin’s price is going against the market expectation and the rise may not materialize.
According to the CryptoRank website, the DOGE price boasts an average return of 7.28% for the month of October. Despite this positive average, it is still one of the most bearish months compared to the likes of January with an average 91.5% return, April with an average of 68.2%, and December with an average of 26.4%.
Featured image created with Dall.E, chart from Tradingview.com
Credit: Source link
