The boom on the Dogecoin blockchain

These days there is potentially positive news for the crypto market: the Dogecoin blockchain is experiencing a real boom in transactions.

Dogecoin (CRYPTO: DOGE) blockchain is experiencing a real boom in transactions, with two peaks in the first half of October.

According to Bitinfocharts, almost 570,000 transactions were recorded in a single day on October 1st, while the second peak occurred on October 7th, with more than 550,000 transactions.

On other days, transactions rarely exceeded 250,000, with daily peaks even below 50,000.

However, this boom is not completely isolated, as in June these levels were even higher, with as many as two peaks above 800,000 daily transactions.

Moreover, the annual high occurred in March, during a full bull run, with more than 2.1 million transactions recorded in a single day.

What is surprising, however, is that for some time now the interest in criptovalute has dropped significantly.

For example, taking as a reference the volume of searches for the word Dogecoin on Google globally, it is discovered that the average level in October was very close to the annual lows, while in March it was almost ten times higher.

So, while on one hand it is obvious that a boom in the use of blockchain occurs when interest is at its peak, on the other hand, a boom when interest is at its minimum appears anomalous.

Only before the boom of 2021 was the global interest in Dogecoin lower than it is currently, so in such a lack of interest, two daily transaction booms, even if not particularly high, must be considered in all respects as two anomalies.

All this, however, has not impacted the market value of DOGE.

Compared to the $0.22 in March, the current price of $0.11 is half.

Furthermore, the current price is also lower than the $0.13 at the end of September.

What could, however, give hope is that the current price of DOGE is still significantly higher than the $0.087 at the end of February, when the mini-bubble began to inflate and then burst in April.

Moreover, the bottom of the last bear-market was positioned below $0.06, which is a figure slightly more than half of the current one.

Taking the 2024 performance as a reference, Dogecoin is currently at +29%, while Bitcoin is at +55%. Ethereum however is still at +15%, so DOGE this year is doing better than ETH, at least for now.

It can be said that the price performance of Dogecoin in 2024 has been average, and not high.

The fact is that there are also other metrics on the rise, besides the simple number of transactions recorded daily on the Dogecoin blockchain.

Stands out in particular the number of daily active addresses, given that the two peaks in October are the largest since March.

However, these are not particularly high levels, even though they are significantly higher compared to the previous months.

The two peaks in October were recorded above the level of 75,000 active addresses daily, against an average well below 50,000. From April to September, the 60,000 mark was exceeded only three times.

In March, however, a peak of even more than 500,000 active addresses in a single day was reached, but at the time there was FOMO in the markets.

Moreover, the average transaction volume did not turn out to be higher than usual in October, with peaks of $28,000 well below the peaks of $50,000 at the end of May.

In light of this, it is easy to understand why these daily booms did not have the strength to positively impact the price of DOGE on the bull and bear crypto markets.

All this, however, has led some analysts to make positive forecasts regarding the trend of Dogecoin’s price in the coming weeks.

The hypothesis that has started to circulate is that of a possible return above $0.20, which is not very far from the peaks of 2024.

The all-time high of $0.73 from May 2021 is still far away, but in the current phase, many would probably be satisfied with even just nearly doubling from the current levels.

Much, however, will probably depend on Bitcoin, because if a new bull run were to actually be triggered, it would most likely be due to the awakening of BTC.

The hypothesis circulating is that from tomorrow a bull phase could begin that might last until the end of the month, and this could indeed help DOGE to approach $0.20 again.