Altcoins
Traders prefer OG over Dogecoin and other Altcoins
On-chain data suggests that Bitcoin has seen an influx of investors recently, while Dogecoin, Cardano, and other altcoins have seen a slowdown.
Total Bitcoin Holders Rise While Altcoins See Steady Movement
According to data from the on-chain analytics company Feeling, the number of Bitcoin investors has increased sharply recently. The on-chain metric that interests us here is the “Total number of holders“, which tracks the total number of addresses on a given network with a non-zero balance.
When the value of this indicator increases for an asset, it could be due to several things. The first and most obvious contributor to this trend would be adoptionbecause a new influx of users would naturally create more addresses.
Another contributor could be former investors who return to reinvest in the coin after selling their balance earlier. The indicator would also increase when investors split their holdings across multiple portfolios for reasons such as privacy.
In general, some net adoption occurs whenever the total amount of holders increases. Historically, adoption has been a constructive sign for any blockchain in the long term.
Naturally, when the value of this measure decreases, it implies that some investors have decided to withdraw from cryptocurrency because they have completely emptied their wallets.
Now here’s a chart that shows the trend in total holders for some of the industry’s top assets: Bitcoin (BTC), Ethereum (ETH), XRP (XRP), Cardano (ADA), Dogecoin (DOGE), and Chainlink (LINK).
How the number of investors has changed for some of the top cryptos | Source: Santiment on X
As the chart shows, Dogecoin began 2024 with rapid adoption as its total holder count had seen a strong upward trend. However, this growth only lasted the first two months, as the metric has since flattened for memecoin.
Other altcoins like Chainlink and Cardano have also seen stable action in the metric during this period. The trend has been exactly the opposite for Bitcoin, where a more or less stable movement in the number of investors occurred earlier in the year, but the asset saw some upward trend to the extent this month -this.
It is possible that investors were previously attracted to Dogecoin and other networks, but now that the markets are experiencing a downward price trend, traders are once again favoring the original cryptocurrency.
Overall, DOGE holders are still up 13.8% over the past three months, while BTC growth stands at 2.6%. Naturally, the latter’s user base is also larger, so a relatively small percentage could be due to that.
Cardano is among the few networks in the industry that saw negative action in total holders during this window, although the decrease was only 0.1%.
BTC Price
Bitcoin has recently struggled to make any recovery attempt count as its price returned to $63,000 after the last failed attempt.
Looks like the price of the coin has been heading down recently | Source: BTCUSD on TradingView
Featured image of Kanchanara on Unsplash.com, Santiment.net, chart from TradingView.com