Dogecoin (DOGE) has seen a mild increase in recent weeks unlike other altcoins. Yet the network is still alive and well when we look at on-chain data. According to blockchain analysis platform IntoTheBlock, the project has processed more than 1 million transactions every day since January 30. On February 2, the daily number of transactions reached a local peak, with more than 1.8 million transactions.
When we put these numbers next to those of Bitcoin (BTC), the size of Dogecoin’s transaction volume becomes all the more remarkable. Recently, Dogecoin has achieved an average daily transaction volume that is 2.5 to 3.1 times that of Bitcoin. By comparison, the Bitcoin network has averaged around 320,000 to 400,000 transactions per day since the start of this month.
A high transaction volume is indicative of an active and engaged user base, constantly using the network. This high volume of transactions indicates greater engagement and can positively contribute to the security and decentralization of the network. It underlines the existence of a healthy ecosystem with a vibrant community, which is crucial for the long-term viability of the currency.
Analysts are positive
Other indicators also confirm a positive trend. Crypto analyst Ali Martinez reported a remarkable growth in the number of Dogecoin wallets late last month, with almost 250,000 new registrations. This increase is clear evidence of significant adoption and exceeds all previous growth rates from 2024, indicating increasing demand for DOGE for the long term.
Disinterest van Elon Musk
Despite strong technical signals, Dogecoin has not performed well in the market recently, a situation that can be partly attributed to the influence of Elon Musk and his recent activities on platform X. Musk, previously known as a catalyst for Dogecoin price increases, is struggling now facing legal complications related to his acquisition of Twitter. Moreover, his declining social media involvement appears to be reducing public interest in Dogecoin.
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Source: https://newsbit.nl/dogecoin-bereikt-mijlpaal-van-1-miljoen-transacties-per-dag/
