The recent surge in Dogecoin network activity seems to come to a halt.
The volatility on the Doge blockchain seems to be slowing, after an activity that saw Dogecoin (DOGE) briefly conduct daily transactions worth higher dollars than Bitcoin (BTC) and Ether (ETH) combined.
Dogecoin’s price increase in 2021 was accompanied by an equally odd increase in the value of transactions taking place on the blockchain. The dollar value of Doge, sent from wallet to wallet, reached $ 82 billion on May 5, exceeding $ 35 billion recorded in Bitcoin and $ 12 billion in Ethereum.
It is even more surprising that Dogecoin surpasses the two best-known blockchains in the world, with daily totals up to $ 10 million by December 2020. In 2021, new actors were added to Tesla CEO Elon Musk and Dogecoin. Similar to the game retailer GameStop shares, social media traders have been working hard to upgrade Dogecoin.
While overall activity on Dogecoin remained well above December’s lows, there was a significant reversal in May suggesting whales could tire Doge.
Dogecoin traded just under $5 billion daily on May 26, marking a 93% drop from the all-time high of $82 billion recorded earlier in the month.
Meanwhile, Doge’s average transaction value fell almost 80% to just under $240,000 on May 26, three days later from $1.16 million on May 23. The large average transaction value of cryptocurrency has persisted for much of the past month, despite coming with a much smaller sample size. This is a sign that the Doge is primarily used by large account holders.
While the increase in activity on the Doge blockchain has occurred with spikes scattered throughout the year to date, there have been significant increases in the two metrics mentioned above in mid-April as traders have begun to work to artificially pump Dogecoin’s value ahead. Up to 4/20 days.
The subsequent decline in network activity saw a 63% drop in the Doge token price over most of May. The decline started at the all-time high of $0.73.