All cryptocurrencies, tokens, and assets all have their tale to tell. For Dogecoin and XRP, crucial metrics are heading in the wrong direction. None of this comes as a surprise, as both assets have yet to overcome their most recent price correction, like all other markets.
Dogecoin Transactions And Active Addresses Go Down
Following a lot of recent market excitement, it appears things slowly return to normal for Dogecoin. The meme currency of the internet has noted a substantial increase in transactions and active addresses in mid-April 2021. DOGE reported a minor surge in early May, yet all that excitement has evaporated ever since. While it is too early to claim common sense has returned, the network activity highlights a significant change.
Thanks to tweets by Elon Musk, Dogecoin has had a good price rally in the first half of 2021. The prices surged hard and set new a-time highs far beyond most people’s dreams. However, that momentum has to end at some point as no market can keep gaining value unconditionally. As this deficit was looming already, it seemingly got accelerated by the recent crypto market crash.
Even today, Dogecoin notes over 23,600 daily transactions. A very respectable amount, given the circumstances, but far from the 80,000 and more from a few weeks ago. As interest in this currency wanes once again, it is logical to see the transaction count decrease over time. A rebound is not unlikely, although it will probably be a short-lived revival.
Making matters slightly worse for Dogecoin is the ongoing decline in active addresses. These metric counts both sending and receiving wallets as active, causing a drop seem all the more problematic. Recovering from this drop is plausible, assuming the price will rebound accordingly. For now, it seems more reasonable to assume a new downtrend, as all markets keep going in the red time and time again.
XRP Has Similar Concerns
Although statistics for XRP are often a bit more challenging to come by, there is a clear correlation with Dogecoin. On the transaction count chart, the numbers have dropped off for XRP in recent weeks. Despite peaking at nearly 1.6 million transfers per day, the network currently handles less than half. With 723,000 daily transactions, it seems as if there is less interest in using the XRP Ledger lately.
That is rather surprising, given the sheer number of partnerships and trials Ripple is going through globally. Thanks to the support from various banks, governments, remittance companies, and other financial service providers, these numbers should not drop by over 50% in a matter of weeks. However, that is what is happening right now, creating a rather interesting ecosystem.