Dogecoin (DOGE) Network Activity Remains Flat, Posing Risk of Significant Price Decline

Despite a bullish spike in some other metrics, this on-chain metric remains vital for the foremost meme coin’s growth.

Dogecoin (CRYPTO: DOGE) network activity has remained largely stagnant, despite a recent uptick in some other on-chain metrics. This lack of activity could pose a risk to the meme coin’s price, which has been showing signs of slowing down.

According to data from IntoTheBlock, Dogecoin’s net network growth has been bearish and has not seen any significant increase recently. Furthermore, data from the platform shows that the number of new addresses on the network has decreased by almost 10% in the last seven days.

In a recent X (formerly Twitter) post, IntoTheBlock provided further insight into the slowdown in Dogecoin’s network activity and how the meme coin has had to rely on existing holders.

"Meme coin Monday: Dogecoin network activity

New addresses joining the network have dropped by almost 10% in the last seven days. This lack of new entries has led to a slowdown in network growth, as shown by our metric Net Network Growth, which remains bearish.

As a result, Dogecoin has had to rely on existing holders, as shown by our Diamond Holder metric. These long-term holders, with an average holding time of over two years and three months, have continued to hold even as others may not be actively using the network.

Meanwhile, 68.11% of Dogecoin holders are still in the money, despite the meme coin’s unimpressive price action. Many of these investors bought DOGE while it was still trading below $0.10.

However, it is important to note that despite the slowdown in new addresses, there were still a few days that saw a large spike in Dogecoin transactions, which could have been caused by existing addresses on the network rather than new holders. This explains why Dogecoin’s price action has been unimpressive, with the meme coin failing to replicate the price gains of other meme coins like Pepe (CRYPTO: PEPE)."

This lack of activity could be a cause for concern, as it may indicate that retail interest in Dogecoin is waning. This could lead to a decrease in demand for the meme coin, which may put pressure on its price and lead to a decline.

However, it is worth noting that Dogecoin’s price is still up over 11% year-to-date (YTD), despite the recent slowdown in network activity. This may indicate that there is still some institutional interest in the meme coin, which could help to support its price in the coming months.

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