Memecoins on the rise again with Shib and Doge trading at an average profit of 10%
Dogecoin on-chain data signals the overall growth of the network, with the majority of Doge investors remaining in profit in addition to the average transaction size on a strong rise, according to data from IntoTheBlock. At the time of going to press, the price of a Doge is up 10%.
Rising transaction size and activity
Doge on-chain data suggests that, while an asset’s price goes up, more background activity begins happening on the network. While foreign exchange inflows still remain low, the increase in transaction activity can only suggest a couple of things: Traders are moving insignificant amounts of funds on exchanges or transferring their Doge between wallets for a variety of reasons.
While exchanges have not yet reported any significant flow activity on Doge trading pairs, the negative effect of rising transactional activity may be reflected if the majority of coins are being transferred to exchange wallets.
Majority of holders in profit
Although 70% of Doge holders remain beneficiaries, the amount itself is not considered too high. Previously, when Dogecoin was trading close to the previous ATH, money “in profit” stood at 90%.
Whenever the “profit” amount hits numbers close to 90%, the correction hits the market as the majority of traders take their profits at the top, triggering a chain of sell-offs and the price falling rapidly.
Though overall on-chain indicators show a “bearish” market, it does not go well with the current price action. Social sentiment indicators also show that the ticker “$ DOGE” is currently trending and outperforming Bitcoin and Ethereum in terms of mentions.
