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Dogecoin Jumps 9% as Trading Volume Surges

Elon Musk’s favorite cryptocurrency Dogecoin is up nearly 10%, becoming one of the crypto market’s largest gainers on Monday.

2 min read
Dog-themed meme coins like Dogecoin, Shiba Inu and DOG are seeing a boost. Image: Shutterstock

Dogecoin (DOGE), the popular meme coin, rose nearly 10% over the past day. DOGE is currently trading at $0.077 according to data from CoinMarketCap.

DOGE, the tenth-largest cryptocurrency with a market capitalization of $10.2 billion, is now well ahead of Polkadot (DOT).

There has been a sharp rise in the coin's trading volume across major cryptocurrency exchanges too. The cryptocurrency's trading volume hovers around $1.1 billion over the past 24 hours, up 148% from the previous trading day.

Despite today's double-digit rise, DOGE is still down 89% from its all-time high of $0.73 recorded in May 2021. 

What's driving DOGE?

The primary reasons behind today's bullish action include increased larger-valued transactions, reduced miner reserves, and steadily increasing long-term holders.

On Sunday, a total of 943 large Dogecoin transactions (transactions worth more than $100 million), up from 505 transactions recorded the previous day indicates data from IntoTheBlock

Elsewhere, the total miner reserve is at 6.16 billion DOGE, a figure down 32% year-to-date to levels last seen in December 2013, according to data from IntoTheBlock

Miner reserve is a metric that refers to the total coins held in miner-affiliated wallets which haven't been sold yet. Decreasing miner reserves indicates that these entities have already cashed in their mining revenue.

Dogecoin miner reserve. Source: IntoTheBlock.

Nearly 2.57 million addresses have been holding Dogecoin for more than one year, up more than 40% year-to-date, according to data from IntoTheBlock

Also, short-term holders (people who hold for less than one month) have fallen to roughly 150,000 after peaking at nearly 876,000 last year.

Dogecoin holding addresses. Source: IntoTheBlock.

Meanwhile, the largest cryptocurrency on the market, Bitcoin (BTC), is down 0.47% over the past 24 hours and currently trades at around $21,347. 

Ethereum (ETH) is up 1.16% over the past 24 hours and currently changing hands at $1,227.

The entire crypto market has slipped below a market capitalization of $1 trillion after nearly reaching $3 trillion in November 2021.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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