According to data from IntoTheBlock, dogecoin on-chain data points to the overall growth of the network and doge The majority of traders stay in profits in addition to the average trade size. There is also a price increase accompanying all these indicators. Details are here.
Increased transaction size and efficiency
Doge on-chain data shows that transaction activity on the network begins to increase as the price of the asset rises. While exchange inflows are still low, increased trading activity can only point to: traders moving insignificant amounts of funds to exchanges or transferring their Doges between wallets for various reasons.
While exchanges have yet to report any significant streaming activity on Doge trading pairs, the negative impact of increased trading activity could be reflected if the majority of coins are being transferred to exchange wallets. Because the most valid reason for moving to stock markets is preparation for sale.
Majority of owners are in profit
Although 70% of Doge holders remain in profit, the amount itself is not considered very high. Previously, when Dogecoin traded close to the previous ATH, the amount in “profit” was 90%. Whenever the amount of “profit” reaches values close to 90%, the correction hits the market as most of the traders’ profits reach their peak, which initiates a chain of liquidations and a rapid decline in price.
While overall on-chain indicators show a “downtrending” market, it goes against the backdrop of the current price action. Social sentiment indicators also reveal that the “DOGE” record is currently trending and outperforming Bitcoin and Ethereum in terms of mentions.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.