Dogecoin has reached a new all-time high in total addresses, now standing at 83.48 million, according to crypto analyst, Ali Martinez.
This milestone indicates continued growth in the number of wallets holding DOGE, suggesting sustained interest in the meme-based cryptocurrency. However, while adoption seems to be increasing, it doesn’t necessarily translate to higher demand or price gains.
Many of these addresses could belong to long-term holders, inactive wallets, or even exchanges managing funds on behalf of users.
DOGE Price Action and Market Trends
Despite this surge in addresses, Dogecoin’s price has struggled. Over the past 24 hours, it gained 6.07%, yet it remains down by 2.27% for the week. The cryptocurrency is currently hovering at its lowest level since November 2024.
Unlike other major cryptocurrencies, DOGE was not included in Donald Trump’s proposed U.S. Crypto Strategic Reserve, which mentioned XRP, Solana, and Cardano. Even so, it benefited from the market-wide rally triggered by the announcement.
However, without a unique catalyst of its own, Dogecoin continues to follow broader market trends rather than setting its own path.
Elon Musk’s Influence and the Lack of a Major Catalyst
Historically, Dogecoin has relied heavily on external influences, particularly tweets and public statements from Tesla CEO Elon Musk. His vocal support has previously driven significant price movements.
However, in recent months, Musk’s mentions of DOGE have been limited, leaving the token without a clear driver for growth.
The absence of Musk’s involvement has made Dogecoin more dependent on overall market conditions. Without strong fundamentals or major developments, its price movements have mirrored those of larger cryptocurrencies rather than standing out with unique momentum.
Also Read: Dogecoin Aligns with Musk’s Idea of “Real Economy Is Not Money, It Is Goods & Service”
Declining Interest Among Investors
Another concerning trend is the 67% drop in Dogecoin’s open interest, which has fallen from an all-time high of $4.07 billion to just $1.33 billion.
Open interest represents the total number of outstanding derivatives contracts, and a steep decline suggests that traders are losing interest in speculative DOGE positions.
Lower open interest often means reduced volatility, but it can also indicate fading enthusiasm from investors.
Whale Activity Sees a Drop
Dogecoin’s large transactions, typically carried out by whales or institutional investors, have also seen a sharp decline since mid-November.
Fewer whale movements suggest that big players are either stepping away from DOGE or choosing to hold their assets instead of making large trades. This drop in activity could be another reason why Dogecoin’s price has lacked momentum.
While Dogecoin continues to see high adoption in terms of wallet creation, its price performance remains weak. Without a major catalyst, such as renewed interest from Elon Musk or broader institutional adoption, the meme coin may continue to move with the larger crypto market rather than lead any independent rallies.
Also Read: Crypto Whales Take Advantage of Market Dip by Accumulating 750 Million Dogecoin Worth $198.3M