The number of holders of the popular chest 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 chest coin project added 88,936 holders over the course of three months. In this middle, DOGE maintains its tenth place at market expense.
In the middle, the holder increase was not reflected in the chest 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.
Drivers of meme coin holder activity
The mismatch between DOGE’s price and holders’ growth can be attributed to several factors, including the belief that the altcoin’s cost will potentially increase. In particular, the prospect of DOGE to collect again is highlighted by the continued accumulation of the asset by whales and related network activity trying to bring more benefits to the token.
The increase in the number of Holders is also tied to the latest development regarding Tesla CEO Elon Musk’s acquisition of Twitter. Koindeks.com As you follow, Musk and the Dogecoin community have had a proper bond in the past. Therefore, the possibility of continued consensus has a potential impact on DOGE’s price trajectory.
In particular, Musk has voiced his foundation for DOGE while working with core developers to ensure the sustainability of chest coins. Musk’s previous tweets about Dogecoin boosted the price of the token. There is a possibility that Dogecoin will be added to Twitter as a payment method, once the agreement is reached. This provides a bullish outlook for the chest coin.
In recent months, Twitter has allowed users to use Bitcoin (BTC) and Ethereum (ETH) for tips. Besides, it allowed them to set Non Fungible Tokens (NFT) as profile photos. As such, the platform has increasingly embraced the crypto branch.
Dogecoin price action
It is also worth noting that the Dogecoin community predicts the asset’s value 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 around the network. Overall prospects depend on broader market price action.