Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
According to the Blockchair on-chain data service, Dogecoin's daily circulation has dropped significantly after reaching a three-month high previously, on Oct. 29. The main reason may be the memecoin's price action.
High network activity was followed by large volumes on the market, including a 43% price increase. Right after reaching an almost three-month high, Doge retraced by almost 12% and then only moved down by 5%.
With high volatility hitting the markets, more traders and investors begin to move their digital assets from exchange wallets to personal ones and vice versa. With the price stabilizing and volatility continuously decreasing, market participants tend to "leave" their funds on exchanges or wallets, without moving them, which then causes a decrease in daily circulation.
The large movements on the market are quite often correlated with the value growth of digital assets. Since daily circulation is measured in volume, rather than in the number of transactions, whenever whale-tier wallets move their assets, the market should expect an increase in volatility.
At press time, Dogecoin is trading at $0.28 with a 1.4% loss. Previous volume numbers have now recovered back to an average of 1.5 billion on Binance.
Denys Serhiichuk
Yuri Molchan
