According to data compiled by Coinbase, the trading volume for Dogecoin increased astronomically during the second quarter of 2021, to nearly $1 billion daily. Dogecoin trading volumes soared by 1,250% between April and June, with $995 million worth of DOGE changing hands daily on average, during the quarter from an average daily volume of $74 million in the first quarter.
What you should know
Dogecoin started the year priced at just $0.004 and saw its first uptick in early February when prices jumped 50% as a result of Tesla CEO, Elon Musk’s campaign in support of the meme-coin.
A massive rally followed as Musk ramped up the Dogecoin FOMO (Fear Of Missing Out), sending the Shiba Inu-themed coin to an all-time high of $0.731 on May 8 in anticipation of his SNL TV appearance. The move culminated in a whopping 18,000% gain since the beginning of the year.
Although many crypto enthusiasts attributed Dogecoin’s meteoric 2021 performance to Twitter – shilling from Tesla CEO, Elon Musk, some speculate that Dogecoin’s impressive performance would not have been possible without the spate of DOGE listings on major exchanges witnessed during Q2. These exchanges include Gemini, eToro and Coinbase.
According to Coinbase’s data, the second quarter also saw global cryptocurrency trading volume increase by 32% overall, with nearly $19 billion worth of digital assets changing hands daily. From the data, we can see that Dogecoin represented more than 5% of the combined crypto volume in Q2.
Coingecko on the other hand estimates that roughly $81 billion worth of digital assets were changing hands daily in Q2, in a report. This means Dogecoin accounted for 1.2% of quarterly crypto volume.
Despite the record rally, Dogecoin has significantly suffered losses since it hit its all-time high, having plummeted 75.3% from its May 8 all-time high to currently stand at $0.18 as of the time of writing this report, according to coinmarketcap. Despite this crash, Dogecoin is still up 4,425% since the start of 2021.
Bottomline
Elon Musk appears to have returned to his DOGE-shilling ways, changing his Twitter profile picture to “Doge-eyes” on July 18 to show his ongoing support for Dogecoin.
Many believe Dogecoin has no real value but numbers do not lie. The meme-coin is trading numbers some altcoins only dream of but investors are still advised to trade with caution.