The crypto Dogecoin (DOGE) has recently recorded a significant increase in network activity, with over 1.93 million weekly transactions. This trend suggests a possible renewed interest in the cryptocurrency, despite the stability in futures.
Let’s see all the details below.
Stable futures and increasing interest: what it means for the crypto Dogecoin (DOGE) in 2024
Dogecoin (DOGE), one of the most well-known memecoins in the world, has recently recorded a significant increase in transactions on its network, indicating a possible return of interest in this cryptocurrency.
According to the data provided by IntoTheBlock, in the last week the network has surpassed 1.93 million transactions, a number that has beaten that of other popular cryptocurrencies like Shiba Inu (SHIB), Floki (FLOKI), and Pepe (PEPE).
This increase in transactional activity represents an important signal for the market, which could translate into a potential bull for DOGE in the coming months.
The increase in weekly transactions, which reached the highest peak since the beginning of July, is indicative of a renewed interest in Dogecoin and could reflect an increase in the use of the network by users.
In particular, the performance of Dogecoin in terms of transactions has consistently surpassed that of other memecoins, consolidating its role as market leader.
Despite the significant increase, however, the volume of current transactions is still lower than the peaks recorded in February 2024, when weekly transactions exceeded 10 million.
The fact that the volume of transactions has started to grow again can be interpreted as a positive signal for those betting on a market recovery of criptovalute and, in particular, of Dogecoin.
Generally, an increase in network activity is correlated with a higher demand for a cryptocurrency, which could lead to an increase in its market value.
However, the current level of transactions remains significantly lower compared to historical highs, which suggests that there is still room for growth.
Futures on Dogecoin and general trend of the crypto market
Another factor to consider is the involvement of investors in Dogecoin futures. Despite the increase in transactions, the market for DOGE futures has remained stable since the end of July.
The open interest, which represents the total number of future contracts not yet settled, has remained around 500 million dollars, according to data from CoinGlass.
This indicates that there have not been large flows of new capital into the Dogecoin futures market.
Suggesting consequently that the increase in transactions could be driven primarily by user activity rather than by speculation or movements of institutional investors.
The relatively flat trend of the open interest in futures could also be explained by the general conditions of the cryptocurrency market.
After the strong enthusiasm that characterized the first months of 2024, the market went through a phase of consolidation and low volatility, with many investors preferring to maintain their positions without adding new capital.
This trend is particularly evident during the holiday period in August, when many investors tend to reduce activity in the markets.
Nonetheless, the recent increase in network activity could signal a resurgence of interest in DOGE, especially if the adoption of the cryptocurrency continues to grow.
A sustained increase in transactions could reflect greater adoption both as a payment instrument and as a trading asset, two elements that could push the price of Dogecoin towards new highs in the coming months.
The competition of the memecoin
Another interesting aspect is the growing competition among the memecoin. While Shiba Inu, Floki and Pepe try to gain ground, Dogecoin maintains its dominant role thanks to its established history and community support.
Although transaction volumes are not at record levels, DOGE continues to show remarkable resilience in an increasingly crowded market of competitors.
In conclusion, the increase in transactions on the Dogecoin network represents an important signal for investors and traders who follow this cryptocurrency.
If network activity continues to grow, it could translate into a greater adoption and, consequently, a possible bull in price.
However, for now, the futures market remains cautious and the open interest has not shown signs of significant growth. It will be interesting to see how the situation evolves in the coming months and if Dogecoin manages to maintain its status as a leader among the memecoin.
