Dogecoin Network Activity Tanks by 95%, Is Demand Fading?

Analyst Ali Martinez observes a massive 95% drop in the active addresses of Dogecoin, signaling a sharp decline in network activity.

Dogecoin’s price experienced a notable decline recently, with investors incurring significant losses. At the time of this writing, DOGE is trading at $0.213, marking a 5.17% increase in the past 24 hours. Despite this short-term gain, the asset remains 15.72% lower over the last seven days, reflecting ongoing volatility.

Declining Network Activity Raises Concerns

While Dogecoin attempts to recover, a decrease in network activity has been observed. Analyst Ali Martinez highlighted this trend, noting a significant drop in active addresses over the past three months. 

On November 21, 2024, the network recorded 1,292,770 new active addresses, with activity peaking above 2.4 million addresses. However, this surge was short-lived.

Between December 2024 and February 2025, the number of active addresses fell by approximately 95%. By February 23, 2025, only 30,815 new addresses were recorded, confirming a substantial decline in Dogecoin’s network engagement.

The price movement reflected this pattern, dropping from $0.4868 to $0.196. The correlation between reduced network activity and price depreciation indicates weakened demand.

#Dogecoin $DOGE network activity has declined by 95%, dropping from 2.66 million active addresses in November to just 130,282 today! pic.twitter.com/SlH3qTuMP6

— Ali (@ali_charts) February 25, 2025

Shifts in Dogecoin Ownership Structure

A separate analysis examined the distribution of DOGE holders over different time frames. The study categorized holders into three groups: long-term investors (1+ year), mid-term holders (1-12 months), and short-term traders (<1 month).

Recent data revealed a 2.67% decline in the percentage of long-term holders, signaling reduced accumulation over time. Additionally, mid-term holders experienced an 11.81% decline, indicating that a significant portion of investors exited the market.

Conversely, the percentage of short-term traders surged by 107.45%, showing increased speculative activity. These shifts suggest that Dogecoin’s investor base is transitioning toward short-term trading rather than long-term holding.

Potential Rebound For Dogecoin Price

Despite recent setbacks, an analyst suggests that Dogecoin’s correction phase might be nearing completion. Market analyst CryptoELITES predicted an imminent rebound, setting ambitious targets for DOGE.

His analysis identified a cup-and-handle pattern from Dogecoin’s 2024 peak and recent lows. Following a price pullback and consolidation, the asset could be retesting the neckline before a potential bullish continuation.

CryptoELITES outlined three price targets, anticipating a 255% rally to $0.75, slightly surpassing its 2021 all-time high. Meanwhile, he further projected continued upward momentum, pushing DOGE to $1.5 and ultimately reaching $5, representing a 2,270% surge.