As Dogecoin (CRYPTO: DOGE) sees a 23% drop in value since Dec. 9, the number of wallets holding the cryptocurrency shows unprecedented growth, as per a tweet by Santiment.
What Happened: On Monday, crypto analytics firm Santiment highlighted a unique trend in the Dogecoin network. Despite a significant dip in Dogecoin’s value, the meme coin’s network has seen rapid growth. In just two weeks, 413.8K new wallets, primarily holding 0.001-1 Dogecoins, have been added. This growth rate is reportedly the fastest in the network’s decade-long history.
🐶 #Dogecoin‘s value is -23% since its top on Dec. 9th. But the #memecoin‘s wallets with >0 $DOGE coins has been growing at the fastest rate in the network’s decade long history. 413.8K new wallets, mostly holding 0.001-1 $DOGE, have been added in 2 weeks. https://t.co/GjDghuB9H9 pic.twitter.com/l6Pv0KvkKW
— Santiment (@santimentfeed) February 6, 2024
See Also: Dogecoin Outperforming ‘Killers:’ Why Elon Musk Speculation Could Fuel Volatility
This tweet comes amidst a general downturn in the cryptocurrency market, with major cryptocurrencies like Bitcoin and Ethereum also trading in the red.
Doge has declined 3.8% for the week as against a 1.5% decline seen in BTC and a 0.2% appreciation in Ethereum. Over a longer 90-day period, the meme coin, often discussed by Elon Musk, has managed to return a small upside of 5.95% compared with Bitcoin’s 20.9% rise and Ethereum’s 22.6% appreciation.
Why It Matters: Despite the dip, Dogecoin has been outperforming its memecoin rivals. Based on data from IntoTheBlock, the number of holders in profit for Dogecoin stands at 46.94% compared to 27.1% for Shiba Inu (SHIB), 24.8% for Pepe (PEPE), and 16% for Floki (FLOKI). Additionally, Dogecoin reported a smaller monthly loss (-4.6%) than PEPE (-24.6%) and Shiba Inu (SHIB) (-8.8%).
Cryptocurrency analyst Ali Martinez noted recently that Dogecoin’s Bollinger Bands are currently at their tightest squeeze since October 2023, indicating an imminent spike in price volatility.
Bollinger Bands, measuring volatility, consists of three bands around a moving average, expanding with price increases and contracting with decreases, offering insight into relative volatility and a snapshot of a cryptocurrency’s volatility compared to historical…
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