On-chain data suggests that memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) observed a large influx of fresh traders last month.
Memecoin Traders & Transactions Both Spiked High Last Month
In a new post on X, the market intelligence platform IntoTheBlock discusses the recent trend in the number of traders on the memecoin side of the cryptocurrency sector.
According to IntoTheBlock, the number of investors holding their coins since less than 30 days ago (those who bought within the past month) hit a record high last month for this class of assets as a whole.
The chart on the left below shows the trend in this metric and how it breaks down for the various memecoins in the market.
The value of the metric appears to have been quite high recently | Source: IntoTheBlock on X
The chart shows that the number of traders for these coins had shot up to very high levels last month. Dogecoin, the largest asset by market cap, unsurprisingly contributed to the highest rise. “This indicates a massive inflow of new traders buying memecoins,” says the analytics firm.
The trader count, however, has cooled off notably since this peak. However, this doesn’t necessarily mean that the new traders who came in have already sold, but rather that some of these investors who purchased may have matured past the 30-day cutoff.
That said, the indicator trend suggests that the influx of new traders coming into the market is no longer of the same intensity as last month. This change is especially drastic in the case of Dogecoin.
The chart on the right side displays the data for the total number of transactions these memecoins handle. As expected, the transaction count also blew up when the record-high influx of new traders was taking place.
New investors mean the onset of new activity for the various networks and, hence, a spike in the total number of moves taking place. Once again, Dogecoin saw the largest spike out of these assets.
Just like the influx of new users has slowed down, though, the transaction activity for memecoins has also hit the brakes recently. This would suggest that users are not interested in making many trades on these networks at the moment.
Historically, the prices have been the most likely to show volatility when there has been high trading interest, so the transaction count may be one to watch as a spike in it could lead to big moves for these assets (the direction of any such moves, though, could go either way).
In another post, IntoTheBlock has also pointed out that the total market cap of the memecoins (that is, the combined valuation of the circulating supplies of these assets at the current spot prices) has registered a new high for the cycle at $56 billion.
Looks like the value of the metric has shot up recently | Source: IntoTheBlock on X
DOGE Price
When writing, Dogecoin is trading at around $0.18, down over 13% in the last seven days.
The price of the memecoin seems to have witnessed a significant decline recently | Source: DOGEUSD on TradingView
Featured image from Shutterstock.com, IntoTheBlock.com, chart from TradingView.com