Dogecoin volume and social dominance hits 2024 peak as X launches dedicated payments account
- Dogecoin on-chain metrics volume and social dominance have hit the highest level in 2024.
- DOGE price declined by nearly 2% in the past 24 hours after offering nearly 7% gains to holders.
- DOGE price plummeted to $0.0870 on January 21 on Binance.
Dogecoin on-chain metrics, volume and social dominance support a price recovery thesis for DOGE. Elon Musk’s social media platform X launched its dedicated payments account handle, @xpayments, fueling anticipation among DOGE holders regarding the cryptocurrency’s acceptance as payment.
Also read: Justin Sun withdraws $60 million in Ethereum, AAVE, SHIB, LINK among other assets from Binance
Dogecoin on-chain metrics support price gains
According to on-chain metrics seen on Santiment, volume and social dominance, DOGE price is likely to recover. Between January 1 and the time of writing, DOGE volume rallied. An increase in volume is a sign of increasing relevance of the asset and its demand among market participants.
DOGE volume climbed from 298.68 million to 1.17 billion on January 21, as seen in the chart below. In the same time period, DOGE price declined from $0.092 to $0.086.
 [15.47.16, 21 Jan, 2024]-638414327619372129.png)
DOGE volume and price. Source: Santiment
Social dominance of the meme coin climbed from 1.14% on January 1 to 3.45% on January 21. The rise in social dominance is a typical bullish sign for an asset, when accompanied by an increase in volume and active addresses in DOGE.
 [15.47.49, 21 Jan, 2024]-638414327874892501.png)
Social dominance of DOGE. Source: Santiment
Market participants believe DOGE could be used to make payments on X and the platform is likely to accept DOGE payments. This anticipation is likely to fuel a rally in the meme coin’s price. At the time of writing, Dogecoin price is $0.0870 on Binance.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
