Despite a recent surge in the price of Dogecoin, data from IntoTheBlock suggests that the network needs a catalyst to drive further growth.

Currently, 68% of Dogecoin wallets remain profitable, reflecting the asset’s resilience and positioning it as a leading player among assets with a market cap exceeding $1 billion. Nevertheless, the DeFi intelligence platform identifies key areas within the network that need to be addressed for sustainable progress.

Dogecoin Holders’ Profitability and Market Sentiment

Data shows that 68% of Dogecoin holders are “In the money” (profitable), 5% are “At the money” (breaking even), and 27% are “Out of the money” (incurring a loss).

Image by IntoTheBlock

This composition suggests a positive sentiment among the majority of holders, indicating strong holding behavior unless significant profit-taking occurs. However, the 27% of holders at a loss might create selling pressure if the price drops further, potentially affecting market stability.

It is crucial to note that the number of new addresses has been trending down, indicating a lack of new participants joining the network. This decline in daily active addresses suggests fewer new users and possibly reduced activity from existing participants.

Image by IntoTheBlock

Therefore, the network may need to attract new participants and re-engage existing users to sustain growth.

Mixed Transaction Volume and Time Zone Activity

Elsewhere, the number of transactions over the past three months has shown a mixed trend with notable but short-lived spikes. These spikes indicate periods of high activity, possibly driven by specific events.

However, the overall trend remains relatively flat or slightly declining in other time frames, and the price of Dogecoin gradually declines over the same period.

This correlation suggests that while transaction volume increases temporarily, it does not have a sustained positive impact on the price.

Interestingly, network activity is notably higher in Western time zones than in the East. The elevated activity in these Western time zones suggests that most of Dogecoin’s network users are based in these regions.

In contrast, the APAC region shows comparatively lower activity, indicating less engagement during their peak hours. IntoTheBlock noted that this indicates that the APAC region could be a promising growth opportunity.

Image by IntoTheBlock

Holder Loyalty and Average Holding Time

Ultimately, according to IntoTheBlock, an important nuance to consider regarding the lower transaction volume is the loyalty of holders, with an average holding time of 2.3 years.

This extended holding period implies that token holders are not actively selling, which can reduce short-term volume. Notably, 67% of DOGE owners have stashed their crypto for over 12 months.

The average holding period suggests that holders have a high degree of loyalty and confidence in the long-term value of Dogecoin.

During this press, Dogecoin was trading at $0.09902, posting a 2% surge in the past 24 hours but over 20% decline in the past 7 days.