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Whales Are Buying Dogecoin According to Smart-Contract Activity

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Fri, 11/26/2021 - 10:48
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Arman Shirinyan
Dogecoin on-chain activity suggests that traders might be trying to enter the coin at lows
Whales Are Buying Dogecoin According to Smart-Contract Activity
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The smart contract activity is one of the indirect ways of determining the number of actions that take place on-chain of one or another asset. In the case of Dogecoin, it has entered the top 10 most actively used smart contracts on the Ethereum chain. 

According to the provided data, Doge took 7th place among the most actively interacted smart contracts on the chain. The meme-coin shared the top with coins like Binance Smart Chain, Binance USD and Chia Coin.

The usage of smart contracts usually implies increased buying activity since, in order to utilize a coin's smart contract, users have to own a certain amount of tokens or coins.

While Doge's on-chain data suggest that more people are starting to use it, the market data suggests the opposite. According to TradingView, Doge/USD trading pairs are losing up to 10% of their value.

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At today's low, Doge reached 15% in certain hours and tested the $0.188 support. The last time Dogecoin was trading at the same level was back at the end of September. Rapid growth in coins' value was followed by the overall bullish cycle on the cryptocurrency market.

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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.