After securing its place as the second largest POW blockchain, Dogecoin has set its sights on DOT as it managed to win back the tenth place in terms of market capitalization.
But the question is- Will the meme coin continue to grow?
Dogecoin had lost its spot as one of the top coins in terms of market capitalization and had slipped to the 14th rank on CoinMarketCap.
However, since 18 September, DOGE has replaced Polkadot. The difference between their respective market caps stood at $570.249 million.
Doge bites back
One of the reasons for DOGE’s growth could be attributed to the meme coin exhibiting an uptick in its volume over the past couple of days.
The volume grew from 202.16 million all the way to 344.45 million at press time.
But the story doesn’t end there, the coin has seen an uptick in the number of active addresses as well. The addresses went from 113k on the 15 September all the way to 120k on the 18 of September.
As can be seen from the image below, DOGE’s velocity has also been subject to a massive increase. Thereby, indicating that the meme coin is being used in transactions more often.
Another community that could be interested in DOGE is that of the miners’. As Dogecoin has become the second largest POW chain, it may generate a lot of interest from proof of work loyalists and miners.
In fact, Dogecoin’s hashrate has grown by 4.01% in the last week. Thus, indicating that the blockchain is more secure and this development could attract more miners.
However, things aren’t all good for DOGE, at the moment. Dogecoin lost some of its social media popularity. Over the past month, DOGE’s social mentions have depreciated by 29.02% and its social engagements have gone down by -39.52%.
The depreciating social media presence could have a negative impact on the future of the memecoin.
Moreover, whales have also been losing interest in the memecoin for the past month. The number of addresses with balances greater than $1m has been on the decline. And, the number of wallets has depreciated by 12.48% in the last 30 days.
However, the usurpation of the 10th rank shouldn’t be just attributed to DOGE’s performance.
Polkadot’s poor performance has also played a role in this event, Polkadot has been seeing a decline in its social media presence and has seen a spike in its volatility. This could be why many investors have lost faith in the token.
Although things are looking favorable for Dogecoin, traders are advised to proceed with caution, as meme coins are known to be very volatile.
Figures such as Elon Musk, who are known to have affected the DOGE’s price in the past could change the trajectory of the coin with any new update.