According to Zack Pokorny, research analyst at Galaxy, the dog-themed cryptocurrency Dogecoin (DOGE) may be awakening yet again.
Dogecoin's price has been underwhelming this year, but it is already exhibiting signs of life, with on-chain data revealing increased activity, implying potential for future rises.
DOGE is up 77% from its bear market lows of $0.053 in June 2022, but it is still down 86% from its all-time highs of $0.68. In its lifespan, the extended 91% drop in the DOGE price has happened twice before big rallies.
Based on past price trends and statistical indicators, the DOGE price is at a healthy level and may be ready for a recovery. The imminent launch of the DOGE-1 satellite adds a literal moonshot element as well.
Dogecoin was down 1.02% in the last 24 hours to $0.094 at the time of writing. According to the research, the DOGE market price has been trending higher than its realized price since November 2022. This move signaled the end of bear markets and the beginning of bull markets.
Other factors leading up to Dogecoin's reawakening
Despite Dogecoin's lackluster price performance, on-chain indicators have been reaching some of the healthiest levels in years and, in some cases, new highs.
Unconventional indicators such as block size reveal new catalysts, which are being driven by the launch of DRC-20 tokens on Dogecoin.
The Dogecoin network has seen an increase in daily transactions and block size, owing to an increase in the number of users and sending addresses. These data indicate that there is a renewed interest in Dogecoin and its on-chain potential.
In this regard, Dogecoin has seen a massive influx of new and active users. The number of non-zero balance addresses has increased by 282,000 (5%) in the last 30 days, while the number of sending addresses has increased by 43,500 (127%), returning to December 2021 / January 2022 levels.
In May 2023, the Dogecoin network saw a huge rise in daily transactions, increasing the cumulative transaction count by 64% in fewer than 50 days. On Nov. 8, daily transaction counts climbed 26 times, reigniting this pattern.
Dogecoin's improving fundamentals should not be disregarded, with the network's hashrate reaching all-time highs of 875 TH/s. This demonstrates that there is an increasing interest in mining DOGE and sustaining the network.