Dogecoin (DOGE) is back in the spotlight as new on-chain data reveals a staggering spike in network activity. According to a recent report by on-chain analytics platform Santiment, shared by crypto analyst Ali, active addresses on the Dogecoin network soared by 400% to nearly 395,000.

“On-chain data from @santimentfeed shows that active addresses on #Dogecoin $DOGE skyrocketed 400% to nearly 395,000. ”

While cryptocurrencies in general have been exhibiting signs of sluggishness, some altcoins are displaying emerging surges in both on-chain and social engagement, noted Santiment in an analysis published on March 14.

Ideally, during a marketwide price downturn, abrupt rises in transactions by whales (displaying their accumulation) or an increase in network growth (suggesting an impending surge in on-chain transactions) are common occurrences.

However, in the present stage of the market cycle, where some coins are exhibiting an explosion in network utility, and another coin is being heavily discussed on social media amid the eight-week downturn, some crypto assets are showing a complete lack of activity.

Recently, there has been a dearth of action on the price front, which explains why we are witnessing the coldest (minimal network activity) days of the year, particularly for speculative assets.

But as network activity is a key indicator of an asset’s health in the long run, the spike in active addresses signals a significant increase in user activity and engagement within the Dogecoin ecosystem, which is a positive sign.

The post Dogecoin (DOGE) network activity spikes 400% as new on-chain data shows 'hot' altcoins amid 8-week downturn appeared first on CryptoCompare.