Intra-chain activity and high trading volumes in large exchanges have led analysts to believe that Dogecoin is once again on the verge of entering an uptrend.
to the Report Coin Telegraph, important segments of the digital currency market, from defaults and unparalleled tokens to memes and second-tier solutions, have experienced price growth and locked-in value, making 2021 a tumultuous year for digital currencies.
Dogecoin was one of the Meem Quinns that experienced great growth and became one of the most famous and popular names in the digital currency market. Dogecoin was a joke. In recent months, the upward acceleration of the Dogecoin price has increased, and various data show more upward sentiment regarding this digital currency.
The Dogecoin hit a low of $ 0.159 about a month ago. The Dogecoin has grown 120 percent since then, reaching $ 0.35 yesterday. The daily trading volume of this digital currency also increased by 63% to $ 8.6 billion.
Experts and traders cite increased intra-chain activity, increased trading volume in large exchanges and large letters of interest in this digital currency as factors that have driven Dogecoin’s price growth.
Increase intra-chain activities
The ability of a project to attract new buyers is one of the most important factors that contribute to its long-term durability; Because new users help increase token fluctuations and demand for them.
Philip Gradwell, chief economist at Chinalissis, said in a recent tweet that Dogecoin’s acceptance is currently at its highest level since 2017 and the market is bullish that year. According to Gordoul statistics, 25% of Dogecoin’s current supply is available to users who received it less than 6 months ago.
In his next tweet, referring to Dogecoin’s in-house activities, he says that on average, 32,000 active users are active on the network every day. Gardul adds in this regard:
Dogecoin has an average of 32,000 active users per day, and this has caused price fluctuations. Currently, between the percentage change of daily active users and the percentage change of Dogecoin price in 2021, the R criterion shows the number 0.7.
Increase trading volume
If you remember, we said earlier that the increase in Dogecoin trading volume in large exchanges is another factor that has led analysts to take a bullish view of this digital currency.
As we can see in the tweet of Pentoshi, a digital currency market analyst, Dogecoin’s daily trading volume at the QuinnBase exchange averaged $ 200 million.
Coin Base is the largest digital currency trading platform in the United States. The increase in Dodge Coin’s daily trading volume can be seen as a sign of the interest of small traders in Dodge Coin and all currencies that are priced below $ 1.
Celebrities like Mark Kuban have recently praised Dogecoin, and this will act as an accelerator to the digital currency’s uptrend. In a recent statement to his numerous followers, Kuban said that Dogecoin is a great option for micropayments.
Kuban’s remarks angered some Bitcoin fans. They wanted Kuban to buy bitcoin instead of promoting a worthless currency like Dodge Coin. Bitcoin fans said that Kuban would position itself as one of Dodge Coin customers so that others would be satisfied with buying this digital currency. In response, Kuban said the decision was largely based on user demand. He added:
I do not consider myself a Dogecoin buyer. I am a buyer of my companies’ products and services. In these companies, it is possible to pay with all digital currencies and 95% of sales are done through Dogecoin. Customers [ما] They choose to use Dogecoin. We can talk about all aspects of bitcoin, but now Dodge Coin is the way people pay.
Despite these issues, it remains to be seen whether Dogecoin can experience its second bullish rally in 2021.