What does the drop in Dogecoin address activity tell us?

The price of Ilon Musk’s favorite coin Dogecoin fell to $0.20 (-8.05%) at the end of this week. The altcoin’s capitalization dropped to $26.651 billion, and it has already dropped to tenth place in the CoinMarketCap ranking of top digital currencies.

The price drop that we have seen since mid-September is accompanied by a record weakening of transaction activity in the Dogecoin network. According to some experts, the drop in network performance signals investors are exiting the altcoin. This is why there has been a decline in the number of active wallets.

Within a month, the value of altcoin collapsed by more than 30%. Dogecoin has fallen in price by 9% in five months.

Analysts also drew attention to the weakening interest of social network users in DOGE. The daily number of tweets dedicated to Dogecoin exceeded 400,000 in spring. In September, the indicator averaged only 18,288 posts.