The power of Dogecoin is strong despite transaction levels hitting the lowest they’ve been since 2017
The story of Dogecoin never ends in the market. Recently, Tesla CEO Elon Musk emphasized the importance of reducing transaction fees on the network. Although the hype has become overwhelming this week, DOGE trading levels have fallen to lows not seen since December 2017.
Dogecoin is more popular than ever
First, the hype surrounding DOGE certainly couldn’t be without Musk. Musk’s most recent tweet comes after AMC CEO Adam Aron confirmed that the movie giant would start working on accepting Dogecoin. Aron seems to be excited that Musk likes his Dogecoin Twitter poll. He congratulated the hundred-dollar billionaire on his success with Tesla and SpaceX.
Musk believes such an improvement is needed for the Bitcoin parody to work as a viable means of payment.
Source: Elon Musk
The rise in the price of Dogecoin also spurred activity in the community. Co-founder Billy Markus is urging node operators to update to Dogecoin Core 1.14.4 to apply low fees by default. The upgrade, released in late August, includes notable performance improvements as well as several bug fixes. Musk described the Dogecoin Core 1.14.4 release as important.
Although the hype has become overwhelming this week, DOGE trading levels have fallen to lows not seen since December 2017. According to Bit Info Charts, the number of daily DOGE transactions has dropped to 16,000 for the first time in four years. This number is in stark contrast to the DOGE-mania that swept the crypto market in April of this year, resulting in a 24-hour peak of 140,000 transactions.
DOGE/USD 4-hour chart | Source: TradingView
The lack of on-chain activity is reflected in DOGE’s price and market capitalization, with the price down 69% from its all-time high of $0.73 in mid-May to $0.22 at writing. DOGE has retraced at an average of 13%, showing strong growth on September 23.