Dogecoin’s Decline: Falling Demand and Market Caution Mark a Shift

Author : Andrew Stauss | Published On : 10 Apr 2024

Dogecoin (DOGE), once a prominent figure in the meme cryptocurrency realm, has encountered a setback as its value dipped by nearly 4% in the past 24 hours, now trading at 0.1909. Interestingly, despite this decline, DOGE’s trading volume has increased by 2.29%, suggesting mixed market activity for the coin in the short term.

Data from the blockchain analytics platform Santiment indicates a dwindling demand for DOGE, contributing to its recent price drop. A closer examination reveals a significant 61% decrease in the daily number of addresses engaging in DOGE transactions, accompanied by a notable 73% decline in total transactions involving the altcoin within the last day.

Santiment’s analysis of DOGE’s social engagement metrics also paints a concerning picture, with a noticeable downtrend starting from April 7. Social dominance and volume indicators, measuring various forms of interaction such as likes, comments, retweets, and upvotes, have plummeted by 33% and 78%, respectively.

In the derivatives market, sentiments towards Dogecoin have soured further, with Coinglass reporting a substantial retreat in trading volume over the last day. Additionally, the coin’s futures open interest, a gauge of market activity, has fallen by 4%, totaling $1.64 billion.