Dogecoin has jumped 17% in the last 24 hours, breaking the $0.21 barrier, as on-chain data shows a significant increase in memecoin volume.
Dogecoin beats the market with a 17% increase in the last day
Most major cryptocurrencies have seen stable returns over the past 24 hours, but Dogecoin has gone its own way as the original meme coin has made a strong recovery.
The graph below shows how the asset has performed in the last few days:
The price of the coin appears to have sharply soared over the past day | Source: DOGEUSD on TradingView
In this latest rally, Dogecoin is up more than 17% in the last 24 hours and surpassed the $0.21 level. Among the top 100 cryptocurrencies by market valueonly Bitcoin Cash (BCH) recorded comparable profits over the same period.
However, DOGE still beats BCH in the 1-week period, as the memecoin managed returns of over 40% in this period, while the Bitcoin hard fork achieved 33%.
The reason behind these two particular assets performing strongly could lie in the fact that Coinbase plans to add future products for them from April 1st. Litecoin (LTC) is also expected to be listed on the same day, but its performance has been much weaker than the other two.
In terms of market value, Dogecoin is currently the eighth largest coin in the sector, as shown in the table below:
Looks like the market cap of the memecoin is just under $31 billion at the moment | Source: CoinMarketCap
From the table, it is apparent that the gap to USD Coin (USDC) in seventh is not very big right now, so if Dogecoin can maintain its rise, it is possible that it will be able to flip the stablecoin.
DOGE transaction volume has seen a sharp increase recently
Something that would confirm that the widespread speculation surrounding Dogecoin is ripe for a rally currently would be its transaction volume. As a user on X pointed out using data from on-chain analytics firm Santiment, DOGE transaction volume has skyrocketed recently.
O “Transaction volume” tracks the total amount of tokens (in US dollars) for a given cryptocurrency that has seen some movement on the blockchain in the last 24 hours.
When the value of this metric is high, it means that users are transacting large amounts on the network at the moment. This trend implies that commercial interest around the asset is currently high.
On the other hand, low values of the indicator could be a sign that general interest in cryptocurrency, both as an asset and as a network, is currently low.
Now, here is a chart showing the trend of Dogecoin transaction volume over the past year:
The metric seems to have gone up in recent days | Source: @trader_kamikaze on X
As visible from the chart, Dogecoin transaction volume has experienced a huge increase recently, and what accompanied this increase was the latest rally.
Rising volume can often be a positive sign for the sustainability of any recovery, as it means that interest in the asset is increasing and therefore more fuel is potentially coming in.
Something to keep in mind, however, is that both selling and buying affect this indicator, so a mass liquidation would also register as an increase in the metric. Thus, while high volumes are normally a requirement for rallies to continue (since without interest, the run can easily slow down), they alone cannot predict a further increase, as the nature of this activity can be difficult to to determine.
Featured image by Kanchanara on Unsplash.com, Santiment.net, chart from TradingView.com
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