The number of holders of the popular meme coin project Dogecoin (DOGE) rose in October. According to CoinMarketCap data, it has increased by almost 100,000 in 3 months.
DOGE recorded an increase in the number of holders
Meme coin project Dogecoin (DOGE) is still struggling with a long downward price action. This casts doubt on the asset’s potential to recover 2021 highs. However, it recorded a significant increase in the number of holders. This shows that some of the investors are betting on the recovery of the token.
Dogecoin had 4,365,551 holders registered as of July 24. This number reached 4,454,487 holders as of October 22, a growth of approximately 2%. According to CoinMarketCap, the meme coin project added 88,936 holders over the course of three months. Meanwhile, DOGE maintains its tenth place by market cap.
Dogecoin 3-month holder chart / Source: CoinMarketCapMeanwhile, the holder increase was not reflected in the meme coin price action. At press time, DOGE was trading at $0.059. This means that DOGE has seen a correction of over 16% in the last three months.
DOGE 3-month price chart / Source: CoinMarketCapDrivers of meme coin holder event
The mismatch between the price of DOGE and the growth of holders can be attributed to several factors, including the belief that the altcoin’s value will potentially increase. In particular, the prospect of DOGE regrouping is highlighted by the continued accumulation of the asset by whales and related network activity seeking to further benefit the token.
The increase in the number of Holders is also associated with the latest development regarding Tesla CEO Elon Musk’s acquisition of Twitter. cryptocoin.com As you follow, Musk and the Dogecoin community have had a good relationship in the past. Therefore, the possibility of the deal’s continuation has a potential impact on DOGE’s price trajectory.
In particular, Musk expressed his support for DOGE while working with core developers to ensure the sustainability of meme coins. Musk’s previous tweets about Dogecoin drove the price of the token up. At the same time, there is a possibility that Dogecoin will be added to Twitter as a payment method if the deal goes through. This provides a bullish outlook for the meme coin.
In recent months, Twitter has allowed users to use Bitcoin (BTC) and Ethereum (ETH) for tips. Besides, it allowed to set Non Fungible Tokens (NFT) as profile pictures. Thus, the platform has increasingly embraced the crypto industry.
Dogecoin price action
It is also worth noting that the Dogecoin community predicts the value of the asset to increase in the future. The crypto community at CoinMarketCap predicts that DOGE will trade at $0.00716 on October 31, 2022. Overall, Dogecoin currently has no significant development in the network environment. Overall prospects depend on broader market price action.
