Dogecoin: New addresses rise, but there’s a catch

• The number of new Dogecoin addresses has increased by over 30%.
• Active addresses have increased to over 1 million.

Recently, Dogecoin [DOGE] observed an uptick in the creation of new addresses. AMBCrypto’s analysis of the accompanying chart revealed a notable increase of over 35% in new addresses over the last seven days.

This development is important, as it suggests potential enhancements in liquidity and trading activity – factors that could contribute to a rise in the value of the meme coin.

More Dogecoin addresses become active

The surge in new addresses and the impressive growth of active addresses signal positive developments for Dogecoin.

Santiment’s analysis of the seven-day active addresses metric showed a consistent rise, with the current count at nearly 1.3 million.

Comparing this to the average of around 450,000 before the 9th of December and the previous peak of around 944,000 on the 1st of December showed a substantial increase.

Source: Santiment

Furthermore, the Daily Active Addresses exhibited a recent uptick, reaching around 166,000, even though there has been a slight drop from this peak.

Notably, this figure remained higher than the average of around 45,000 in the preceding months. These trends suggested increased activity and engagement within the Dogecoin network and could contribute to its growth.

The number of holders continues to grow

Another metric exhibiting consistent growth is the total number of Dogecoin holders, as Santiment’s chart indicated. From November to press time, there has been a substantial increase of over 400,000 holders.

The press time stood at around 5.7 million as of the latest data. The chart further illustrated an upward trend, suggesting that the number of holders may surpass the 6 million mark before the year concludes. 

Source: Santiment

DOGE’s downtrend continues

Dogecoin’s price trend delayed aligning with the positive trends observed in its on-chain metrics. A closer look at the chart showed fluctuating prices over the past seven days.

How much are 1,10,100 DOGEs worth today?

At the time of writing, DOGE was trading with a slight decline of less than 1%, extending the losses from the preceding trading session.

Source: TradingView

Additionally, the Relative Strength Index (RSI) line remained above the neutral line while near it. This trend signified a weakening of the bull trend for DOGE.