Written by Hazel J. Greene, Senior Analyst

The recent surge in the value of Dogecoin has sparked a significant increase in trading volume, indicating a renewed interest among traders. On-chain data from Santiment, an analytics firm, demonstrates that the meme coin’s trading volume has reached its highest level since early April.

Trading volume refers to the total amount of a cryptocurrency being transacted on the blockchain within a specific time frame. A high trading volume suggests increased market activity, highlighting active participation from traders. Conversely, a low trading volume may indicate minimal investor interest in a particular coin.

Recent data reveals a substantial surge in Dogecoin’s trading volume, coinciding with its impressive rally. As seen in the accompanying graph, the meme coin has outperformed other top assets in terms of trading volume. Such sharp price movements tend to attract investors, which explains the increased interest in Dogecoin following its recent rally.

The surge in Dogecoin’s trading volume is an encouraging development for the sustainability of its rally. This influx of interest from a large number of traders is crucial to maintain the momentum of such price movements.

Interestingly, two other prominent cryptocurrencies, Litecoin (LTC) and Ethereum (ETH), have also witnessed a rise in trading volume within the same period. For Litecoin, this growth coincides with the anticipation surrounding its upcoming halving event—where block rewards will be permanently reduced by half in just nine days. As for Ethereum, the surge in interest has occurred after the cryptocurrency’s price decline to around $1,850. This volume increase could be influenced by panic selling, but it may also signal a potential opportunity for dip buying, potentially supporting a price turnaround.

As of writing, Dogecoin is trading at approximately $0.078, marking a 12% increase in value over the past week.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.