Data shows Dogecoin and Cardano are among some of the assets that have continued to show the same adoption trend this year so far as in 2023.
Dogecoin & Cardano Have Observed Wallet Growth In The First Week Of 2024
In a new post on X, the on-chain analytics firm Santiment has talked about what the address growth of various cryptocurrencies in the sector has been like over the past year.
The relevant indicator here is the “total amount of holders,” which keeps track of the number of wallets of any asset that carries some non-zero balance on the blockchain.
When the value of this metric goes up, it can mean that investors are opening new addresses on the network currently, or old holders are investing again in the asset after having emptied out their addresses earlier. As such, this kind of trend can be a sign that adoption or buying is happening.
Such a rise in the indicator can also arise from existing users opening up fresh addresses for privacy purposes or some other reason. But this usually isn’t relevant to the greater market, unlike adoption, which can have a positive impact on the price in the long run.
On the other hand, the indicator going down can imply some of the holders are completely clearing out their addresses, a sign that a mass exit from the cryptocurrency may be going on.
Now, here is a chart that shows the trend in the total amount of holders for six different top cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), XRP (XRP), Cardano (ADA), and Chainlink (LINK).
Looks like all these assets have enjoyed growth over the past year | Source: Santiment on X
As displayed in the above graph, these cryptocurrencies have all seen some degree of adoption over the past year as their total number of investors has gone up.
Bitcoin, which has 52.6 million addresses, saw a 32% rise in this period, while Ethereum registered a 52% increase and now has more than double BTC’s number at 112.1 million.
Cardano has also outperformed the original digital asset in this metric as it saw an increase of 38% in its total holders. XRP and Dogecoin are still ahead of ADA in terms of total number, though, despite their lesser growths of 26% and 22%, respectively.
While some coins like XRP and Bitcoin have seen a slowdown in their address growth recently, DOGE, ADA, and ETH have continued to enjoy adoption in this new year, as the indicator has continued to go up for them.
Following the latest growth, Dogecoin now has 5.7 million wallets carrying a balance, which puts it above any cryptocurrency in this list not named Bitcoin or Ethereum.
Adoption only continuing to happen for the meme coin and the other assets suggests that investor interest hasn’t cooled off just yet, which can be an optimistic sign for things to come later in 2024.
DOGE Price
While more investors have been entering the Dogecoin space recently, the asset’s price has performed contrary to expectations, as it has gone down over 12% since the year started, with its price now trading around $0.0789.
The price of the coin appears to have been declining recently | Source: DOGEUSD on TradingView