In the sector of cryptocurrency, the biggest success story of the year has been Dogecoin- a joke cryptocurrency that has turned into a favorite. Incidentally, the last month also saw the project gaining major traction and there has been data that points towards the cryptocurrency turning bullish yet again.
This falls perfectly into place with the result of the market as it has been going through a major wild ride throughout the year. Multiple sub-sectors that include NFTs, decentralized finance, layer-two solutions, as well as memecoins have witnessed their total value locked with their token prices reaching new highs.
Dogecoin Gaining Major Traction Again
According to data from TradingView and Cointelegraph Markets Pro, Dogecoin hit a low on the 20th of July, after which the price of the cryptocurrency went up by 120% to reach an intraday high of around $0.35 on the 16th of August. The trading volume for the same currency over the course of the day has increased by 63% to $8.6 billion. There are obviously a few catalysts as to why most traders have been developing a more bullish attitude towards DOGE- one of which includes an on-chain activity.
According to a tweet from Philip Gradwell- the main economist at Chainalysis, the adoption of Dogecoin is currently at its peak ever since the bull market of 2017. There have been quite a few new users- some of them holding 25% of the current supply now- ones who had been holding on to it just for six months. This ability to attract new and multiple stakeholders is in itself one of the most important factors which call for the long-term viability of the cryptocurrency.
One other reason for the increase in the traction towards Dogecoin has been the rising trading volumes of the currency in some of the largest cryptocurrency exchanges across the world. In a tweet by Pentoshi, a pseudonymous analyst, has argued over the trading volume of the currency over the last day, with Coinbase averaging almost $200 million per day.