Dogecoin Sees Record Low Activity: Just 66 Whale Transactions and Fewer Than 60K Active Addresses – Can DOGE Rebound?

The price of Dogecoin struggles to maintain a bullish rally amid falling active addresses, lower whale transactions, and reduced user engagement.

Dogecoin (DOGE) has extended its decline, currently trading around $0.2329, reflecting a 4.77% drop in the past 24 hours. This new dip worsens its weekly performance, now at an 11.57% decline. This ongoing slump comes as the cryptocurrency struggles to maintain investor interest and activity within its ecosystem. 

After peaking in late 2024, DOGE’s price trajectory has shown a consistent downward trend, with temporary spikes quickly giving way to further drops. The persistent decline raises concerns about Dogecoin’s market stability and future growth potential.

Declining Dogecoin User Activity 

One of the key indicators of Dogecoin’s declining momentum is the significant drop in daily active addresses. Market data shows daily active addresses have fallen below 60,000 per day, marking the lowest level since October 2024. 

This decrease suggests reduced user engagement and waning interest in the cryptocurrency. Additionally, transaction volume in USD has also declined, mirroring the drop in active addresses and DOGE’s price. While transaction volume previously spiked during price peaks, it has gradually diminished.

Reduced Whale Transactions

Another critical factor contributing to Dogecoin’s sluggish performance is the decline in whale transactions exceeding $1 million. The current whale transaction count has dropped to just 66 per day, significantly lower than the frequency observed during previous price surges. 

This reduction suggests that large holders are now less active in the market, potentially impacting volatility and price support. Historically, whale transactions have played a crucial role in influencing crypto price movements.

Shifting Holder Dynamics 

Data on Dogecoin balances by time held reveals further insights into shifting market dynamics. There has been a recent 2.67% decrease, a significant drop of 11.81%, and a notable increase of 107.45% in different holding categories. 

This trend reflects a decrease in medium-term holders and a rise in short-term traders, aligning with the overall decline in whale transactions and active addresses. 

Breakout on the Horizon?

Despite the ongoing downtrend, an analyst remains optimistic about Dogecoin’s future. Pseudonymous analyst Trader Tardigrade recently described DOGE’s current consolidation as a “Boring Phase,” likening it to a stagnation period in 2017 that eventually led to a nearly 15-fold price surge.

 According to historical patterns, DOGE could experience a significant breakout exceeding $1.30 after March 2025. However, this optimistic outlook hinges on renewed interest and increased activity within the ecosystem.