Bitcoin (www. btcHangQing. cn) -chain data shows that Dogecoin has reached a new milestone, as coin now has more than 5 million addresses holding some tokens. According to data shared by market intelligence platform IntoTheBlock, more than 5 million DOGE addresses currently hold DOGE tokens.

As the chart above shows, the total number of investors on the Dogecoin network has increased sharply recently, suggesting that the adoption of meme coins is accelerating.

Generally, adoption is a constructive sign for the long-term outcome of any cryptocurrency, as it lays a solid foundation for sustainable initiatives to occur in the future.

Interestingly, adoption is not the only thing the asset has recently observed; as the chart of another metric shared by analysis companies shows, user activity on the blockchain has also increased.

The figure above shows data for daily active addresses, which tracks the total number of unique canecoin wallets participating in some kind of transaction activity on the blockchain each day, whether as a receiver or a sender.

It can be assumed that the number of active addresses is roughly the same as the number of unique users using the network, so this indicator can provide us with hints on the current situation of trader activity.

From the chart, the measure has recently grown rapidly, which may not be surprising because new addresses with a balance have to make at least one transaction to receive the balance, causing them to be counted in the index.

That said, the growth is still quite impressive, so it is clear that not all of this user activity comes from new users; existing users may also be more active than usual.

Historically, a large number of active users has created the perfect environment for a certain degree of volatility, as these investors acting simultaneously can generate large enough volatility to change the market.

While this active user base can provide the fuel needed for a rebound, it is uncertain whether the volatility that Dogecoin will observe is of this type; past trends have also led to bearish price movements.

However, given the high adoption of memes, the cryptocurrency will certainly be favored. Even if there is a bearish trend now, dogecoin could still turn things around in the future.

Dogecoin approached the $0. 082 mark yesterday, but since this local top the asset appears to be hit as it has now fallen to $0. 078.