- Dogecoin recently set an all-time high of $0.087 – Binance rate
- However, on-chain metrics did not reflect the massive price surge
- DOGE’s active addresses failed to hit an all-time high as traders used Robinhood
- Robinhood does not allow direct ownership of digital assets
On the 29th of January, the online crypto trading community inspired by the achievements of WallStreetBets with the pumping of Gamestop (GME), decided to buy Dogecoin (DOGE) en masse. As a result, the meme-coin went on to hit new all-time highs of $0.087 – Binance rate.
The events surrounding the incredible pump of Dogecoin (DOGE) is best captured by the team at Glassnode via the following statement.
There’s no better example of social media driven crypto hype than Dogecoin’s (DOGE) meteoric rise. Born from a meme, DOGE is unsurprisingly being embraced on social media and fueled by groups on platforms like Twitter, TikTok, Discord, Telegram, and Reddit. DOGE price jumped up to over $0.085 on January 29th, shattering the previous all-time high of $0.017.
Dogecoin (DOGE) Active Addresses Fell Short of an All-time High
The team at Glassnode went on to explain that majority of the DogeCoin buyers did so via Robinhood which does not allow them to actually hold DOGE. According to Glassnode, this prevented Dogecoin from achieving an all-time high in terms of active addresses. They explained:
DOGE also benefited from Robinhood’s shortcomings: after Robinhood limited buying of GME, AMC, and other stocks on the morning of January 29th many investors turned toward DOGE.
Despite the huge run up in price DOGE active addresses did not even reach a new all-time high.
This suggests that most new buyers bought and held on centralized platforms like Robinhood rather than buying DOGE and holding it in their own addresses.
Dogecoin Consolidates at $0.030
At the time of writing, Dogecoin (DOGE) is trading at $0.031 as traders and investors contemplate on the meme-coin’s next move. The initial plan was to pump DOGE to $1. Therefore, there could be another attempt at pumping Dogecoin to at least $0.10.
However, as with all price gains orchestrated via social media, another mega pump will most likely end in a massive correction such as the one witnessed last week. Dogecoin traders and investors are thus reminded of the risks associated with such price movements that are reminiscent of the pumps and dumps of the 2017/18 bull cycle.