Dogecoin Belief Grows: 5 Million Users Now Back DOGE

On-chain data shows Dogecoin has reached a new milestone as the meme coin now has over 5 million addresses that are holding some tokens in their balance.

Dogecoin Has Observed Both Adoption And Usage Recently

According to data shared by the market intelligence platform IntoTheBlock, there are now more than five million DOGE addresses that hold DOGE tokens.

As displayed in the above graph, the total number of investors on the Dogecoin network has observed a sharp increase recently, suggesting that the meme coin has been observing accelerating adoption.

Generally, adoption is a constructive sign for the long-term outcome of any cryptocurrency, as it builds a solid foundation for sustainable moves to take place in the future.

Interestingly, adoption isn’t the only thing the asset has observed recently; the user activity on the blockchain has also observed an uplift, as the chart of another indicator shared by the analytics firm shows.

The above graph displays the data of the “daily active addresses,” which is an indicator that keeps track of the daily total number of unique Dogecoin wallets that are participating in some kind of transaction activity on the blockchain, whether as a receiver or sender.

The number of active addresses could be assumed to be about the same as the number of unique users using the network, so the metric can provide us with hints about how the trader activity is looking right now.

From the chart, it’s apparent that this indicator has seen rapid growth recently, which may not be that surprising as the new addresses popping up with balance would have to make at least one transaction to receive the said balance, leading them to also be counted under the indicator.

That said, the indicator’s rise has been still quite extraordinary, so obviously, not all this user activity would be coming from just the newcomers; existing users are also likely more active than usual.

Historically, a large number of users being active has resulted in the perfect environment for some volatility, as these investors making moves simultaneously can create waves large enough to shift the market.

While this active userbase can provide the fuel required for a rally, it’s not certain that the volatility Dogecoin will observe would be of this type; bearish price action has also resulted from this trend in the past.

However, considering the high amount of adoption that the meme coin is also observing at the moment, chances are certainly looking in favor of the cryptocurrency. Even if a bearish trend does follow right now, Dogecoin may still be able to turn it around in the future.