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DOGE Daily Circulation Decreases by 90%, Here Are Main Reasons

Sat, 10/30/2021 - 14:30
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Arman Shirinyan
Doge traders have calmed down after prices skyrocketed by more than 40%
DOGE Daily Circulation Decreases by 90%, Here Are Main Reasons
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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%.

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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.

Doge price

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.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.