DOGE Transactions Surge Past 1.93 Million to Outperform Peers

On Sep 20, 2024

DOGE is poised for a bullish run as on-chain activities boom with weekly transactions surpassing 1.93 million while Open Interest makes an impressive surge to $459.18 million.

An analyst argues that DOGE has consistently outshined Bitcoin in every market cycle, and the current cycle would be no different.

Dogecoin (DOGE) has recorded a significant surge in on-chain activities as network transactions crossed 1.93 million in the past week. According to IntoTheBlock data, this is the highest weekly count since early July, outpacing popular meme coins, including Shiba Inu (SHIB), Floki (FLOKI), and Pepe (PEPE). However, the current volume remains significantly below the peak recorded in February this year when transactions hit over 10 million in just a week.

Dogecoin processed 1.93 million transactions last week, marking the highest weekly transaction count since early July. Although still well below the February peak, this uptick is a promising sign for the $DOGE network. pic.twitter.com/9WfNMAaEZo— IntoTheBlock (@intotheblock) September 17, 2024

According to analysts, the rising transaction volume is an indication of a potential recovery of user engagement and growing adoption which could fuel price growth in the near term.

Looking at other metrics, Dogecoin has also recorded impressive numbers in Open Interest (OI) and funding rates in the futures market. Coinglass data shows that the Doge’s OI increased to $459.18 million on September 13 from $442.37 million on September 7. Similarly, the funding rate has shifted from negative to positive within the same period.

Reason for the Surge, Analysts Speak on Dogecoin’s (DOGE) Future Move

Investigating the cause, CNF analysts observed that this market movement coincides with a recent tweet by Elon Musk, who established himself as the head of a new government institution if Trump becomes the president of the US. Fascinatingly, the tweet featured an AI-generated image of Musk with a placard “D.O.G.E.” and a text reading “Department of Government Efficiency.” The tweet was also in response to Trump’s decision to create a Government Efficiency Commission.

Department of Government Efficiency pic.twitter.com/HFeHYNIkJN— Elon Musk (@elonmusk) September 7, 2024

Right after the tweet, DOGE surged by 16% to imitate its previous move. Currently, market data shows that DOGE is steadily reacting to the rising transaction activities and OI, with a 2% surge in price in the last 24 hours and trading at $0.1068.

At the current price, DOGE faces serious resistance in its 50-day exponential moving average (50-day EMA) after testing the wedge’s lower trendline as support. According to analysts, a push above the 50-day EMA could send the price to $0.108. In the near term, the price could hit $0.193 if the falling wedge goes as predicted.

Subjecting the DOGE price to further analysis, an analyst identified as Master Kenobi has predicted that the meme coin could outperform Bitcoin (BTC) in the ongoing cycle. Comparing both assets, the analyst disclosed that the current market cap of DOGE is the same as that of Bitcoin in 2017. Apart from that, DOGE has consistently outperformed Bitcoin in every market cycle over the past ten years.

The reason I believe DOGE will continue to outperform in this cycle is simple: Bitcoin achieved these market caps without a blueprint, being the pioneer of the industry. In contrast, DOGE—and its community—has had the advantage of riding Bitcoin’s trajectory and using it as a launchpad. Bitcoin did not have this luxury; it paved the way. From this perspective, DOGE has been significantly more privileged, benefiting from the groundwork (including the massive influx of capital into the crypto market) laid by Bitcoin, which allowed it to grow more quickly.