Dogecoin (DOGE) Activity-Related Metrics Have Plunged Recently, Here's What This Could Mean for Its Price

Some Dogecoin indicators related to network activity have returned to the lowest level in a few months.

Dogecoin activity has dropped to the lowest level in a few months, which could be bad news for the meme coin’s price.

Three key Dogecoin on-chain indicators have returned to their lowest level in months, suggesting that activity across the board has declined.

Usually, Dogecoin requires high user participation, especially from the whales, in order to mount up any significant move. With the activity-related indicators sitting at lows, it’s possible that the meme coin’s price will continue to struggle in the coming days.

Here’s a closer look at the on-chain activity and what it could mean for Dogecoin’s price.

Dogecoin Activity Drops To Lowest Level In Months

Dogecoin has had a rough 2023 so far, with the meme coin’s price down over 80% from its all-time high. But despite the poor price performance, Dogecoin activity remained relatively high throughout 2022.

Now, however, some key Dogecoin on-chain indicators have returned to their lowest level in months, suggesting that activity across the board has declined.

Three metrics of particular relevance here are the Whale Transaction Count, Transaction Volume, and Daily Active Addresses. The first of these, the Whale Transaction Count, keeps track of the total number of DOGE transfers carrying a value of more than $1 million.

Transactions of this size generally belong to the whale entities, so the indicator can be assumed to represent the activity that the humongous traders of the market are participating in.

The Transaction Volume, the second indicator, also mostly tells us about the activity of these investors, as it measures the total amount of Dogecoin that’s becoming involved in transfers on the network. The transfers of the small investors are naturally also included in this value, but since the whale transactions tend to be quite large, they drown them out from the data of the metric.

The final indicator, the Daily Active Addresses, is the one to watch for to know the activity level of the regular investors. This metric measures the number of addresses taking part in at least one transaction on the network every day, whether as a sender or receiver.

While whales are large in size, their numbers tend to be much lower than the retail investors, so the Daily Active Addresses, which favors address count, brings out the behavior of the small entities.

Now, a chart shared by an analyst at X shows the trend in these Dogecoin on-chain indicators over the last few months.

All three of these indicators have dropped to relatively low levels recently, which means activity across the board has declined for Dogecoin.

At present, the whales are making just 66 daily transactions and less than 60,000 unique addresses are becoming active on the blockchain. Martinez has noted that such a low level of activity hasn’t been seen since October of last year.

Dogecoin Price Struggles As Activity Drops

Usually, Dogecoin requires high user participation, especially from the whales, in order to mount up any significant move. With the activity-related indicators sitting at lows, it’s possible that the meme coin’s price will continue to struggle in the coming days.

However, the metrics may be to keep an eye on, as it often only takes a bit of news to get investors to rush back to the meme coin.