Dogecoin Active Addresses Skyrockets 990% in a Week

The Dogecoin network is experiencing a resurgence in activity and investor interest, signaling the early signs of a potential new bull cycle for the DOGE price.

Meanwhile, the broader crypto market remains bullish, with Ethereum (ETH) outperforming Bitcoin, prompting speculation that an altcoin season may be imminent.

Dogecoin Network Records Rising Activity: What is Driving The Surge?

Data on Glassnode shows that Dogecoin active addresses rose from 61,892 on May 7 to 674,527 as of May 14. This represents a surge of nearly 990% in a week, suggesting renewed user engagement and transactional volume.

A dramatic rise in futures market interest accompanies this surge in network usage. According to recent data, open interest (OI) in DOGE futures has jumped by more than 66% over the past week. Specifically, it climbed from $989 million to $1.65 billion between May 7 and 14.

The sharp increase in leveraged positions indicates growing trader confidence and anticipation of volatile price action.

Further fueling momentum is Coinbase’s announcement of upcoming wrapped Dogecoin support on the Base network. Coinbase Assets revealed that cbDOGE, a wrapped version of Dogecoin, is among several tokens that will soon launch on Base, Coinbase’s Layer-2 Ethereum scaling solution.

“cbADA, cbDOGE, cbLTC, cbXRP coming soon. These assets are not yet live or available. We will announce their launch at a later date,” Coinbase Assets shared in a May 14 update.

While the launch date has not yet been finalized, the move signals growing institutional and ecosystem support for DOGE.

Wrapped assets increase token utility by enabling cross-chain interoperability and DeFi use cases, potentially unlocking new demand streams. Coinbase already has a wrapped Bitcoin product, cbBTC, which attained a $1 billion market cap in 57 days.

As Base continues to gain traction, cbDOGE could bring more liquidity and exposure to the king of meme coins. Coinbase did the same with cbBTC. It launched native support for its wrapped Bitcoin product on Solana, expanding Bitcoin access for users in the process.

Analyst sentiment appears to be turning more bullish as well. Galaxy, a well-followed crypto market observer, suggested that the DOGE price may be entering its “third bull cycle.” The analyst points to the familiar pattern of Dogecoin flying under the radar before a rapid surge in attention and price.

“May I present you DOGE. Yet another case of ‘nobody talks about it until everybody talks about it,’” Galaxy wrote in a post on X (Twitter).

Dogecoin has repeatedly defied expectations during past crypto cycles. High-profile endorsements, notably from Elon Musk, have also boded well for the DOGE price in the past.

However, Musk’s influence on meme coins is dissipating, leaving Dogecoin in investors’ hands.  

Dogecoin’s recent surge in network activity, derivatives interest, and infrastructure developments suggests the token may be gearing up for another spotlight moment.

If the trend continues and Coinbase successfully launches cbDOGE on Base, Dogecoin could benefit from increased DeFi integration, trading volume, and renewed public attention.

However, risks remain, including macro headwinds, meaning investors should conduct their research.