- Daily trading volume for DOGE is at its lowest point in two years.
- 2023 started off on a good note as coin accumulation climbed steadily.
Data from the on-chain analytics platform Santiment revealed that altcoins had suffered a severe drop in their daily trading volume in the last two years. In fact, a comparison of the daily trading volumes of the top cryptocurrency assets by market capitalization over an extended period revealed that these assets currently logged their lowest daily trading volumes since July 2020.
Source: Santiment
Read Dogecoin’s [DOGE] price prediction 2023-24
DOGE amongst the dearly departed
According to Santiment, the leading meme coin Dogecoin [DOGE], has seen a decline in its daily trading volume in the last two years. As of this writing, DOGE’s trading volume in the last 24 hours was $402 million. For context, DOGE’s daily trading volume reached a peak of $42 billion on 29 April 2021, but has since decreased significantly.
Likewise, DOGE’s price peaked at $0.65 on the same day and has since fallen by 88%. At press time, DOGE exchanged hands at $0.0747, data from CoinMarketCap revealed.
Source: Santiment
As DOGE’s price steadily fell in the last 24 months, sharks and whales on the network gradually let go of their whale holdings to hedge against increased losses.
When the general cryptocurrency market shaved off over $1 trillion in 2022 and DOGE’s value dropped by 58% within the 12-month period, the count of DOGE holders that held between one and 1,000,000 DOGE tokens fell as well. In 2022, their count declined by over 7%.
Source: Santiment
Further, an analysis of DOGE’s MVRV ratio revealed that the meme-based cryptocurrency was frequently undervalued throughout the previous year.
Typically, when an asset’s MVRV ratio falls within the range of zero to one, it indicates that the market is considered “undervalued,” meaning that if all holders sell their assets at the current price, they will likely incur losses on average.
This data suggested that when investors attempted to sell their DOGE tokens in 2022, with the exception of the period between the end of October and the beginning of November, they incurred losses.
Still undervalued at press time, the MVRV ratio was pegged below one at -15.68%, meaning that many DOGE holders still held at a loss
Source: Santiment
How many DOGEs can you get for $1?
DOGE on a daily chart
Currently trading at $0.0747 at press time, DOGE’s price was up by 4% in the last 24 hours. With increased trading within that period, the metric was up by over 100%, per CoinMarketCap. So far this year, DOGE’s value has climbed by 6%.
Positive trends in key indicators demonstrated an increase in buying activity since the beginning of the year. The Relative Strength Index was hovering at 47.62 at the time of this report, attempting to move beyond the neutral zone. Meanwhile, the Money Flow Index was recorded at 51.48.
Source: DOGE/USDT on TradingView
