On-chain Metrics Indicate Whales are buying Dogecoin

Since the beginning of the year, Dogecoin has seen a bullish rally, but there have been signs of slowing down from the middle of 2021. There was a lot of hype created about the meme token back in April and May because of the interest shown by Elon Musk, the CEO of Tesla and Spacex. However, there has been a significant slowing down where the token’s activity with retail investors is concerned. But, a look at the recent on-chain data indicates that Dogecoin is actually one of the top 10 contracts that are most used on the Ethereum network. This is an indication that the meme token and its network are experiencing increased action.

According to the current data, Dogecoin ranks seventh when it comes to the most active smart contract found on the chain. The meme coin is holding this position amongst some of the market giants like Chia Coin, BNB and Binance Smart Chain. The increase in on-chain activity is an indicator that buying activity for the meme coin is on the rise. It also indicates that there is a lot of interactive action from users where the Dogecoin smart contract is concerned and this creates buying activity for the meme token. 

It seems that the on-chain data is quite different from what seems to be happening in the market. According to statistics provided by Tradingview, as compared to the USD, Dogecoin appears to be weakening. There has been a decline of about 10% in the DOGE/USD trading pair. In the last 24 hours, the value of Dogecoin declined to as low as $0.19, which is a monthly low. The last two months have seen the meme token experience a bull run, but it is currently trading near the lows it saw back in September. 

Nonetheless, it is important to note that Dogecoin is certainly not the only meme token that has experienced a significant fall in its value. The majority of the crypto market has entered in the red zone because of a surprising bearish trend. In the last 24 hours, the top cryptocurrency Bitcoin also hit a monthly low of $54,000. Furthermore, since November 10th, the cryptocurrency has suffered from a 21.5% decline in value, after reaching an all-time high of $69,000. On-chain data has highlighted that 90% of the bitcoin that’s sent to exchanges is because of crypto whales. 

This is in direct contrast of the events that took place back in September and October because the current data indicates that whales seem to be adding to the selling pressure. Ethereum, the largest altcoin, is also experiencing a notable dip in its price. In the last two weeks, the token has plummeted by 17% and it also hit a monthly low of $3,960. As far as Dogecoin is concerned, it has also faced stiff competition from Shiba Inu, another meme coin that was named the DOGE ‘killer’. But, Elon Musk’s favor of the meme token has helped it in growing quickly and it has prompted people to refer to him as the ‘Dogefather’. 

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