Dogecoin Usurped: These Memecoins Overtake DOGE In Active Trader Count
April 12 2024 - 12:00PM
NEWSBTC
On-chain data suggests Dogecoin is no longer the dominant meme coin
in terms of its weekly active trader count. Here are the coins
above it. Dogecoin Has Been Surpassed In Trader Count By Other
Memecoins According to data from the market intelligence platform
IntoTheBlock, DOG and DEGEN are the two assets that have managed to
surpass the original meme-based cryptocurrency in terms of weekly
trader count. A “trader” here refers to an investor who has been
holding onto their coins since less than 30 days ago. These
investors generally tend to move their coins often, as they play
the role of active traders in the market. They are certainly not
the HODLers of the sector. Related Reading: Bitcoin Back Above
$70,000 Despite Negative Taker Volume When the number of these
traders goes up for any asset, it means that some fresh interest is
potentially coming into the coin. Price actions like rallies are
only sustainable when they have an ever-increasing fuel coming in,
so the trader count going up can perhaps be a bullish indication in
this direction. On the other hand, the metric going down implies
traders either are losing interest in the cryptocurrency or have
decided to hold onto it in the long term, thus maturing past the
30-day threshold. Whatever the case be, though, a drawdown in the
indicator does suggest a lack of new hands coming into the market.
Now, here is a chart that shows the trend in the number of traders
for the various meme coins in the sector: The data for the number
of traders for meme-based tokens over the past couple of years |
Source: IntoTheBlock on X As displayed in the chart, Dogecoin (in
blue) has consistently remained number one in terms of the number
of traders, which only makes sense as DOGE has generally been the
most popular meme coin, as its market cap would indicate. Hype and
excitement are usually the number one driver for attracting users
to a cryptocurrency. It would appear, though, that DOGE has
recently been falling off in this metric. “While DOGE has long
dominated almost every metric in the memecoin market, it seems to
be losing some of its dominance,” says the analytics firm. The
interest behind the coin may thus not be at the same level anymore.
As for which meme coins have overtaken the cryptocurrency so far,
IntoTheBlock notes, “DEGEN currently leads with 129k active
traders, followed by DOG with 126k.” Related Reading: Bitcoin 2
Months Through “Euphoria Wave,” How Long Was The Last One? Given
this high interest in these memecoins, it’s possible they may be
likely to go through some volatility in the near future as all
these traders make moves at once. In theory, this volatility can
take these coins in either direction, but as the intelligence
platform explains, “a strong increase in traders usually coincides
with bullish momentum.” DOGE Price Dogecoin had slipped below the
$0.17 level last week, but the coin has since bounced back as it’s
now trading just under $0.20. Looks like the price of the memecoin
has gone stale since its recovery push | Source: DOGEUSD on
TradingView Featured image from Kanchanara on Unsplash.com,
IntoTheBlock.com, chart from TradingView.com
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