Crypto: Rise in the price of Dogecoin (DOGE), a relationship with its MDIA?

Between July 18 and July 22, the Average dollar invested age (MDIA) of Dogecoin fell by 58 days. As a result, the price of DOGE rose by 11% on July 23. If you want to understand the correlation between the two facts, give yourself a short reading break. To go!

MDIA, quasaco?

MDIA is the abbreviation of ” Average dollar invested age “, which can be translated into French as “Age Moyen and Dollars Investis”. When applied to cryptocurrencies, it indicates the median age of all coins or tokens on the blockchain, weighted by the purchase price.

MDIA is a metric developed by the Santiment team that approximates the average investment in BTC or DOGE at any given time. To clear it, it is necessary to observe the retention period of the cryptographic asset in an address. And from there, the calculation of the average of all these ages becomes possible.

Please note that “coin/token age” and “dollar age” should not be confused.

Let’s take the case of Alice and Bob’s bitcoin hodlers, which helped Santiment better explain the concept of MDIA. Here it is :

Alice gave herself 1 BTC in 1er January 2017, while Bob bought 0.5 BTC on the 1er January 2018. If they are still HODLing, Alice has this day [le 20 septembre 2019] 1 BTC whose age is 992 days. While Bob has 0.5 BTC with an age of 627 days. So the average age of the corners is [de 870,33 jours]. »

Source: Saniment Insights

As for the average age of dollars, this refers to the average age invested to buy the coins. If on the day of Alice’s purchase of the BTC coin, the 1er In January 2017 it was worth $958.70, a year later it was trading at $13,391.80. So the average age of the dollar invested by Alice and Bob is 672.71 days.

Source: Saniment Insights

Case of Dogecoin

It’s time for us to revisit Dogecoin’s recent history, whose MDIA was 264 days on July 18. On July 22, observers saw a drop in the average investment in DOGE at 206 days.

Note that in the case of DOGE and other cryptocurrencies, continuing an uptrend will logically lead to prolonged price stagnation. The opposite case, i.e. the fall of the MDIA from a corner, refers to a movement of assets committed by the hodlers. Logically, this should lead to an increase in the price of DOGE.

So there’s a reason behind Elon Musk’s much-loved price hike last week. If it traded at $0.064 last July 18, the price was revised upwards on July 23 to reach $0.07113.

Source: Trade View

On July 21, observers also saw DOGE’s trading volume double. At times it went from $564.79 million to $1.01 billion.

It is also worth noting that a new dynamic has emerged in the chain during the same period. In particular, this was reflected in a 15% increase in the index of the number of unique addresses that have transacted in DOGE. But it didn’t stop there: on July 23, a decrease of 48% was observed. The number of active addresses on the Dogecoin network at 49,118.

It is also worth noting the over 600% increase in DOGE’s total amount on all trades executed between July 18 and 21. At the end of this drop in MDIA, this statistic dropped 98%.

In such situations, whales do not sit still. Therefore, during these 3 days, an increase in their trades was highlighted. To give you an insight into their business, keep in mind that the number of transactions over $100,000 is at 30% raw.

Source: Santiment

But regardless of the MDIA, the Dogecoin has its 10 . not lost yete position on the list of Coingecko cryptocurrencies. For now, Polkadot ALSO stays in place and Solana jealously guards his position just up front. Otherwise, Shiba Inu still has to make an effort to pay the rating of his memecoin rival, Dogecoin. Because at the time of writing this article, he is still on the 13 . statee position, Dai is in 12e position (surprising) and Polygon at 14e square.

Sources: Saniment Insights; coin quora; AMB crypto

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Mikaia ANDRIAMAHAZOARIMANANA avatar

Mikaia ANDRIAMAHAZOARIMANANA

The blockchain and crypto revolution is underway! And the day the impact will be felt on the world’s most vulnerable economy, against all odds, I’ll say I had something to do with it

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