Why Dogecoin’s soaring numbers hit a snag

• Despite initial growth, DOGE’s holder count hovered around 4.89 million for months.
• Weighted sentiment increased as circulation dropped.

The total number of Dogecoin [DOGE] holders has remained around the same spot since 27 May, suggesting that the investors’ interest in the coin has been shrinking. According to Santiment, the total number of DOGE holders was 4.89 million at press time.

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But before the metric flatlined, DOGE experienced a significant increase between January and a few weeks into May. This meant that a number of new addresses joined the DOGE clan with the aim of benefiting from its long-term price action.

Despite the hold-up in holder count, DOGE has been able to garner a 13.44% increase in the last 30 days.

Source: Santiment

Switching perception 

But there were some interesting events happening with DOGE besides the aforementioned. For instance, on-chain data revealed that the holder count did not negatively impact the weighted sentiment.

At press time, DOGE’s weighted sentiment was -0.645. The weighted sentiment shows the average acumen linked to a cryptocurrency. This is done by taking into account the unique social volume.

Although cynical, the metric rise from -1.99 on 9 June means that defeatist perception at that time was tilting toward optimism. 

However, the coin’s social volume did not have a similar trend to the weighted sentiment. Instead, it aligned more with the stuck number of holders.

Social volume represents a coin’s unique mentions pertaining to arbitrary search and discussion. And based on Santiment’s data, Dogecoin’s social volume has been extremely low since 9 June.

Until the time of writing, the tides have not changed. This means that the hype around DOGE has been reduced. Market-wise, it could mean that the coin was undervalued and far from its top.

Source: Santiment

Little development and falling circulation

With respect to development activity, Santiment showed that Dogecoin had significantly decreased.

As of this writing, the development activity was 0.048. Typically, when development activity increases, it means that public commits to the blockchain are tremendously active. 

For example, this was the case when a part of the Dogecoin community introduced the DRC-20 Doginals. For context, the developers introduced DRC2O to allow the minting of new tokens on the Dogecoin network at a cheap cost.

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But the decline at press time suggested that developers’ dedication to upgrades on the network has been slow.

Likewise, Dogecoin’s 30-day circulation has fallen. At the time of writing, the circulation was 0.008. The drop in circulation means that only a few DOGEs have been used in transactions lately.

Source: Santiment