Memecoins have made people millionaires in the past. Yes, that is correct.
However, with most meme projects offering no specific utility and tokens’ prices mostly influenced by online comments from popular figures and general market conditions, investors have become increasingly skeptical of long-term investments in these coins.
With no significant ecosystem upgrades in the past few months, the leading meme coin, Dogecoin [DOGE] has embarked on a price decline since the beginning of the year.
While the rest of the market posted gains during the bull market rally in July, DOGE failed to log any major growth in its price.
31 days of no major growth
Following the June bear market that sent the leading meme coin spiraling downwards by 95%, from its 4 May price level of $0.13, July was not any better.
At the beginning of the month, DOGE was pegged at an index price of $0.066. The 31-day bull run led other prominent meme coins like the SHIB to rally by 17%. DOGE however only grew by 1.4%.
Within the same period, the token’s market capitalization only rallied growth from $8.77 billion to $9.06 billion.
Interestingly, with a daily average of 282.02 million in trading volume in July, the token managed a high of 1.01 billion in trading volume on 20 July.
This spike was a result of the DOGE touching the $0.75 price point on that day, the highest price level the token logged in the entire month.
On-chain performance
Despite the negligible price growth, data from Santiment revealed a gradual growth in the number of active addresses that traded DOGE tokens in the 31-day period.
At 73,800 addresses on 31 July, daily active addresses on the DOGE network grew by 13%. The metric even went as high as 105,000 addresses on 28 July, the highest daily addresses DOGE has seen in three months.
Transaction volume on the network peaked on 21 July with 41.34 billion recorded as the aggregate amount of DOGE tokens across all transactions completed on that day.
This was following the price high of 20 July. Transaction volume on the network proceeded to decline by 96% as DOGE closed the month with an aggregate of 1.53 DOGE.
Source: Santiment
On a social front, the token’s social dominance rose to 8.49% after the price rallied to a high of $0.75.
It, however, declined by 61% as DOGE ended July with a social dominance of 3.3%. As for its social volume, it also touched a high of 5628 on 21 July. Ending the month at 2057, DOGE’s social volume declined by 63%.
Surprisingly, developmental activity on the DOGE network managed an 80% growth despite the minimal ecosystem updates in the last month.
Source: Santiment
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