Is Dogecoin (DOGE) losing its magic?
Dogecoin’s reaction metrics have faltered, leaving some experts to wonder if the cryptocurrency’s appeal is fading. Market indicators show a decrease in trading volume, with fewer transactions taking place compared to previous months.
Will this once cryptocurrency be able to regain its momentum, or is its star beginning to fade?
Dogecoin stagnant new addresses
The growth of new addresses joining the Dogecoin community has come to a standstill since May, according to another DOGE price report. However, analysis of the on-chain data reveals that this slump in new holders has not negatively impacted the weighted sentiment associated with the cryptocurrency.
Source: Santiment
As of the last update, the DOGE weighted sentiment stands at -0.645. This metric provides insight into the average sentiment associated with a particular cryptocurrency, given the unique social scale surrounding it.
Interestingly, despite the somewhat negative value, weighted sentiment has shown an improvement from the lowest point of -1.99 on June 9. This shift indicates that the defeatist perception prevalent during that period has gradually shifted towards a more optimistic outlook.
DOGE market cap slightly above the $10 billion level. Chart: TradingView.com
Social size and number of bearers: a divergent trend
However, while the weighted sentiment shows a positive trajectory, the social volume of the currency tells a different story. Rather than correspond to a stagnant number of coin holders, social volume of Dogecoin has been significantly lower since June 9, according to Santiment data.
Social volume measures the number of mentions and discussions specifically related to cryptocurrency across different platforms. In the case of Dogecoin, this metric indicates a significant drop in overall online activity and conversation surrounding the coin.
So far, there have been no major changes in the above trends. This indicates that the hype surrounding DOGE has diminished significantly. From a market perspective, this may indicate that the currency is undervalued and has not yet peaked.
The road ahead for Dogecoin appears to be challenging, as the cryptocurrency struggles with stagnant new addresses and low social media volume. However, it would be too early to dismiss the resilience of this meme-based digital asset.
Source: Coingecko
As of the most recent data from KoenjikoDOGE price stands at $0.068, reflecting a decrease of 4.7% over the past 24 hours. However, despite this recent decline, Dogecoin saw a seven-day rally of 4.6%, showing signs of resilience in the face of short-term fluctuations.
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Featured image from Terminix