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90% reduction in Dogecoin daily transactions; What was the cause?


The volume of Dogecoin transactions has decreased significantly in the last 2 days after the price reached the quarterly peak. Recent data show that the recent price movements of this digital currency are one of the main reasons for the decrease in the volume of daily transactions.

to the Report YouTube shows in-line data from the Blockchair website showing that its daily turnover has dropped significantly since the Dogecoin hit a quarterly high on October 29th. The main reason for this could be the price movements of this digital currency.

The high activity of the network and the consequent increase in the volume of transactions caused the price of Dogecoin to increase by 43%. After reaching the peak of the quarter, the price went up another 12% and a little later, it decreased by 5%.

As market fluctuations increase, more traders and investors are shifting their digital currencies between personal wallets and exchanges. With prices stabilizing and volatility steadily declining, market participants tend to leave their capital in exchange offices and wallets and not make transactions. As a result, reduced market mobility reduces the volume of daily turnover.

90% reduction in Dogecoin daily transactions;  What was the cause?
Dodge Coin Price Chart (1-Day Dodge Coin Market Overview / Dollar)

Large shifts are often correlated with the growth in the value of digital currencies. It should be noted that the daily turnover is measured based on the volume of transactions instead of the number of transactions. As a result, the movement of assets in the market whale wallet can increase volatility.

At the time of writing, the Dogecoin is trading at around $ 0.26, down 6.2% in the last 24 hours. Currently, the trading volume of this digital currency has increased somewhat compared to the previous days and has reached an average of $ 3.4 billion.

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