After a series of activities in which Dogecoin (DOGE) briefly processed daily transactions in dollars, Higher than Bitcoin (BTC) and Ether (ETH) combined, the observed increase in the Dogecoin blockchain appears to be slowing.
Dogecoin’s price spike over the course of 2021 was accompanied by an equally outrageous increase in the value of transactions on its blockchain. The dollar value sent from wallet to wallet by DOGE peaked at $ 82 billion on May 5, surpassing the $ 35 billion recorded in Bitcoin and Ethereum.
It’s even more amazing to beat the two most famous blockchains in the world, as Dogecoin managed daily sums of just $ 10 million as of December 2020. Dogecoin brought new eyes to Tesla CEO Elon Musk in 2021, and this focused on efforts by social media traders to pump Dogecoin in a way that is similar to the stock of game retailer GameStop.
And while overall activity in Dogecoin remains well above its December lows, there was a significant reversal in May, suggesting whales may be fed up with Dogecoin.
Dogecoin processed nearly $ 5 billion worth of daily transactions on Wednesday, a 93% decrease from the high of $ 82 billion earlier in the month.
In the meantime, DOGE’s average transaction value fell dramatically from $ 1.16 million on Sunday to less than $ 240,000 three days later on Wednesday, a decrease of nearly 80%. The coin’s oversized average transaction value persisted for most of the last month, even though the sample size was much smaller. This is a sign that Dogecoin has mainly been used by large account holders.
Although the increase in activity on the Dogecoin blockchain has been in scattered peaks over the year to date, there was a significant spike in both of the above metrics in mid-April as traders began to make efforts to increase the value of Dogecoin in the Dogecoin to be artificially pumped until April 20th.
The subsequent drop in network activity was accompanied by a 63% drop in Dogecoin price for most of May, as it fell from its recent high of $ 0.73.