Dogecoin has been caught in a whirlwind of adoption, especially when it comes to new investors. Crypto analyst Ali Martinez shared on X that the meme coin has seen a huge increase in the number of new addresses every day. Over the course of a week, new addresses registered on the Dogecoin network every day saw a 72% jump. This suggests increased adoption which could mean an influx of new money into the meme coin from here.
72% Jump in One Week
As the crypto market ushers in the new month of October, the Dogecoin network averaged 11,500 new addresses every day, matching its figures from last week. However, as the month of September drew to a close, there was a huge jump in network activity.
On Monday, September 20, which was the last day of the month, new addresses registered in the network in one day jumped to 19,630. This corresponds to a 72.29% increase in the new daily address, which corresponds to the increase in the price of Dogecoin.
Daily new addresses are not the only metric that has seen a jump as Dogecoin’s daily active addresses are also getting in on the action. According to data from on-chain aggregator, IntoTheBlock, daily active addresses rose to 58,180 from a low of 43,860 recorded last week. This translated into a 37.23% increase in active addresses over a 7-day period.
However, there has been a significant increase in the number of non-zero Dogecoin addresses, which can be bearish. Non-zero addresses refer to the number of addresses that no longer hold any DOGE tokens. Therefore, this could mean that they have sold all their coins or merged them into other wallets. However, there was a 46.25% increase in the number of non-zero addresses over a 7-day period.
What’s Driving the Dogecoin Surge?
The increase in Dogecoin’s metrics can be explained by the recent market boom. The month of October, and the last quarter of the year, has generally been good for the price of Dogecoin. Therefore, the expectation is that DOGE will continue this trend and see rapid growth this month.
However, things don’t seem to be going as planned as the price of Dogecoin has already dropped over 5% to start the new month. This may suggest that the value of the meme coin is contrary to market expectations and an increase may not happen.
According to the CryptoRank website, the price of DOGE boasts an average return of 7.28% in the month of October. Despite this positive rate, it is still one of the bearish months compared to the likes of January with a return rate of 91.5%, April with a rate of 68.2%, and December with a rate of 26.4%.
The featured image was created with Dall.E, a chart from Tradingview.com