Dogecoin, which one started as a meme cryptocurrency, has shown that it can compete successfully in the crypto market. While Dogecoin is still the biggest meme crypto, on-chain data suggests the crypto is losing steam among whale investors.
According to data from IntoTheBlock, the number of Dogecoin transactions worth $100,000 or more has fallen sharply in recent months. Data also shows that the number of daily transactions has steadily declined since May.
Dogecoin Whale transactions
Dogecoin seems to be losing interest from whale traders. A deep dive into IntoTheBlock’s on-chain data revealed that Dogecoin only experienced 651 whale transactions in the last 24 hours and 4.85 thousand whale transactions during the week.
This metric tracks transactions above $100,000, but the current level is only a weak reflection of that Past performance of Dogecoin. At the height of the Dogecoin hype in 2021, whale transactions made up a significant portion of all Dogecoin transfers, reaching a whopping 39.3k transactions in one week.
A metric that tracks the number of total transactions has shown similar results at low volume. Dogecoin registered one staggering increase of 8,220% in daily transactions reached 2.08 million on May 27, but this number has since fallen to just 38,000 transactions in the past 24 hours. When daily active addresses decrease so quickly, it is usually a sign that interest in the crypto asset is waning.
DOGE market cap currently at $8.6 billion. Chart: TradingView.com
Dogecoin has been in a downward trend for quite some time, although it is still the 9th largest cryptocurrency by market capitalization. At the time of writing, Doge is trading at $0.06133, down 3.59% in a monthly time frame. The crypto has also witnessed a 22.24% drop in trading volume over the past 24 hours.
Declining interest in Dogecoin and other meme coins
The value of meme cryptocurrencies is highly dependent on hype and popularity rather than their usefulness in the real world. Declining interest and activity among users and investors can therefore be a problem.
Shiba Inu has caught the attention of the crypto industry in recent months, it seems elevating itself from just a meme crypto. Other meme coins such as Dogecoin and Dogelon Mars have struggled to receive investor interest. According to on-chain analytics firm Santiment, social media conversations about meme coins are now at their lowest level since 2020.
While the drop in transactions is concerning, Dogecoin has defied the odds before. There’s a good chance that X (formerly Twitter) could integrate this Dogecoin payments on its platform. If implemented, this could serve as the next catalyst for Dogecoin’s growth.
Featured image from Getty Images