The Dogecoin (DOGE) network encounters a period of stagnancy as the number of addresses holding the meme coin slows, diverging from previous months’ expansion. Market intelligence from Santiment reveals a mere 60,000 new addresses holding DOGE since the month’s onset, contrasting sharply with January and February’s robust increases.
Decrease in Holder Activity
February witnessed an impressive surge from 5.92 million to 6.51 million DOGE holders, highlighting a notable growth trajectory compared to March’s sluggish pace. During the same period last month, the network experienced a surge of 450,000 new addresses, showcasing a far more rapid expansion than the current trend.
In January alone, DOGE established a new record with 247,240 new addresses created on January 29, demonstrating a remarkable surge in holder activity.
Related article: Dogecoin Price Analysis: DOGE Price Correction and Potential Support Levels
Crypto analyst Ali Martinez suggests that sustained growth in the network’s expansion could positively influence DOGE’s price, underscoring the significance of holder activity.
Potential Explanations
The stagnant holder activity in Dogecoin might surprise some in the crypto community amidst the prevailing meme coin frenzy, hinting at possible shifts in investor preferences toward undervalued assets.
Related article: Deciphering Dogecoin’s Recent Surge: Prospects for Reaching $0.2
Data from Santiment indicates that other leading meme coins like Shiba Inu (SHIB) and Pepe (PEPE) have not shown significant increases in holder counts either, reflecting a broader trend across the meme coin market.
SHIB has experienced no growth in holder count since the month’s commencement, maintaining a steady 1.38 million holders.
Pepe’s Limited Holder Base
PEPE, despite boasting a year-to-date gain of over 370%, still struggles with a holder count below 200,000, placing it behind DOGE and SHIB in terms of user base.
Despite the current downturn in holder activity, DOGE remains a focal point of interest, expected to regain momentum with renewed interest in network functionalities like the Doginals.
As of the latest data from CoinMarketCap, DOGE is trading at approximately $0.13, marking a nearly 14% decline over the past 24 hours.
Source: CoinMarketCap
