After a series of activities where Dogecoin (DOGE) briefly processed a higher dollar value of daily transactions than Bitcoin (BTC) and Ether (ETH) combined, the rise of the Dogecoin blockchain appears to be slowing.
The price increase of Dogecoin in the course of 2021 was accompanied by an equally unusual increase in the value of transactions in the blockchain. The dollar value of DOGE sent from wallet to wallet peaked at $ 82 billion on May 5, surpassing the $ 35 billion recorded for Bitcoin and Ethereum.
It is all the more astonishing to surpass the two most famous blockchains in the world, since Dogecoin only processed daily sums of only 10 million US dollars in December 2020. In 2021, Tesla CEO Elon Musk and Dogecoin turned focused efforts by social media traders to pump Dogecoin in a similar way to the shares of game retailer GameStop.
And while general activity on Dogecoin is well above the December lows, a significant reversal was seen in May, suggesting that whales may be tired of Dogecoin.
Dogecoin processed just under $ 5 billion worth of daily transactions on Wednesday, a 93% decrease from the all-time high of $ 82 billion earlier in the month.
Meanwhile, DOGE’s average transaction value fell sharply from $ 1.16 million on Sunday to below $ 240,000 three days later on Wednesday – a decrease of nearly 80%. The coin’s oversized average transaction value persisted for most of the last month, although it came in over a much smaller sample size – a sign that Dogecoin was mainly used by large account holders.
Although the spike in activity on the Dogecoin blockchain was spiked throughout the year, there was a significant spike in both of the above metrics in mid-April when traders began to artificially value Dogecoin in advance increase up to 4/20 days.
The subsequent drop in network activity was accompanied by a 63% drop in Dogecoin price for most of May, as it fell from its recent all-time high of $ 0.73.