- The activities of short-term traders in the memecoin ecosystem have jumped.
- Dogecoin has maintained a lead with growing ecosystem hype.
According to a recent report, Dogecoin (DOGE) is leading other players like Shiba Inu (SHIB) and Pepecoin (PEPE) in trading activity. The report, published by on-chain data aggregator IntoTheBlock, shows DOGE has received the most attention from short-term traders among other memecoins.
DOGE Outpaces SHIB and PEPE in Trading Activity
According to IntoTheBlock, DOGE had the highest number of active short-term traders in the last seven days. Notably, short-term traders for DOGE came in at 110,000. Other top memecoins, including SHIB, DEGEN, and PEPE, came far behind.
Short-term trader activity plays a significant role in memecoins, as these tokens are primarily driven by hype.$DOGE unsurprisingly leads the pack with the highest number of short-term traders.$DEGEN stands out with around 23,000 active short-term traders—matching Shiba… pic.twitter.com/PAtX1G2OrX
— IntoTheBlock (@intotheblock) October 11, 2024
SHIB and DEGEN both recorded 23,000 short-term traders each. DEGEN’s performance is notable as the memecoin has 10% of Shiba Inu’s market capitalization.
PEPE, on the other hand, shows 19,000 active traders over the past week. Other smaller memecoins, such as Coq Inu (COQ), Turbo (TURBO), Mog Coin (MOG), and MAGA (TRUMP), show 4,000 short-term traders.
Short-term traders are important in the memecoin ecosystem since the tokens are largely hype-driven. Typically, investors look to short-term trading activity to determine whether to buy the memecoin.
Meanwhile, the surge in Dogecoin’s short-term traders coincides with bullish forecasts for the meme coin. Notably, crypto analyst and trader Ali Martinez noted that DOGE is on track to repeat its bullish history. Martinez shared a chart demonstrating that Dogecoin has broken out of a multi-year descending triangle with a bull run since 2015.
Before the bull run, Martinez noted that Dogecoin first surged 200% before staging a 60% pullback. The analyst stated the coin must repeat this pattern before a bull run can occur this cycle.
Increase in Dogecoin Whale Activity
While DOGE anticipates a potential bull run, the memecoin is seeing increased whale activity. As CNF mentioned, IntoTheBlock highlighted that large investors (whales) accumulated 2.07 billion DOGE in just one week. This represents the biggest purchase since January of this year.
As of this writing, Dogecoin has increased by 3.5% in the past day to $0.109. However, the 24-hour trading volume decreased by 6.5% to $690 million. Despite Dogecoin’s uptick on the daily chart, DOGE is still down 7% from its Monday peak of $0.11509.
Dogecoin’s rival SHIB also recovered 4.8% in the last 24 hours to $0.00001753, after a 13.17% decline from Monday. PEPE, the 25th-largest cryptocurrency, followed the same trend with a 24-hour increase of 5.2%.
Commenting on memecoins increasing prominence, CryptoQuant CEO Ki Young Ju says these digital assets could find structure and purpose. In an earlier CNF post, Young Ju said memecoins could gain legitimacy and broader acceptance by aligning with charitable causes.
He claims donations represent the most realistic path to order, making them more appealing, especially to conservative investors who may see their contributions as charity.
