Memecoins have made people millionaires in the past. Yeah that’s right.
However, since most meme projects do not offer any specific utility and token prices are mainly influenced by online comments from popular personalities and general market conditions, investors are becoming increasingly skeptical of long-term investments in these coins.
With no major ecosystem upgrades in recent months, the top meme, Dogecoin [DOGE] has started a decline in prices since the beginning of the year.
While the rest of the market made gains during the bullish market rally in July, DOGE failed to register any significant growth in its price.
31 days with no significant growth
After June’s bear market that saw the leading meme coin spiral down 95% from its May 4th price level of $0.13, July was no better.
At the beginning of the month, DOGE was pegged at an index price of $0.066. The 31-day bull run led other major meme coins like SHIB to rally by 17%. However, DOGE only increased by 1.4%.
Within the same period, the token’s market capitalization only increased from $8.77 billion to $9.06 billion.
Interestingly, with an average daily trading volume of 282.02 million in July, the token achieved a high trading volume of 1.01 billion on July 20.
This rise was a result of DOGE touching the $0.75 price point that day, the highest price level the token has recorded all month.
Performance in the chain
Despite the negligible increase in prices, the figures from Sentiment revealed a gradual increase in the number of active addresses that traded DOGE tokens over the 31-day period.
At 73,800 addresses as of July 31, daily active addresses on the DOGE network increased by 13%. The count even reached 105,000 addresses on July 28, the highest daily addresses DOGE has seen in three months.
Transaction volume on the network peaked on July 21st with 41.34 billion recorded as the total amount of DOGE tokens in all transactions completed that day.
This was after the July 20 price high. Trading volume on the network dropped by 96% as DOGE closed the month with a total of 1.53 DOGE.
On the social front, the token’s social dominance increased to 8.49% after the price rose to a high of $0.75.
However, it fell 61% as DOGE closed July with a social dominance of 3.3%. As for its social volume, it also hit a high of 5628 on July 21st. Ending the month at 2057, DOGE’s social volume was down 63%.
Amazingly, development activity on the DOGE network achieved 80% growth despite minimal ecosystem updates in the past month.