Dogecoin $DOGE Faces Steep Decline: A Look Into the Current State of the MemeCoin’s Network and Market Activity
Dogecoin ($DOGE), the well-known meme coin that surged into the limelight in 2021, is seeing a dramatic downturn in its network activity and market performance. Once thought to have a good chance of being an up-and-coming cryptocurrency, it now looks like a has-been.
Long-term holders and investors are facing what some describe as a denial phase, and various metrics and a gut feeling say that an old stalwart has serious challenges ahead, with contraction of trading volume and five-figure-dollar amount futures market, as well as the sharpest drop-off in the Dogecoin network that anyone can remember.
Declining Network Activity: A 95% Drop
For holders of Dogecoin, one of the worrying indicators is a steep slide in network activity. The count of active addresses on the Dogecoin network has nosedived by a stunning 95% in just a few months. In November 2024, Dogecoin was enjoying a zenith with 2.66 million active addresses. However, by February 25, 2025, that number seemed to be counting down to its inevitable grave as it retched up just 130,282 active addresses. In what surely is a coincidence, this recent nosedive follows on the heels of a pretty steep price decline for Dogecoin.
#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
Any cryptocurrency that experiences a drop in active addresses should be concerned, because it means users may be exiting or simply not using the network very much anymore. Dogecoin seems to be experiencing this trend right now. Its strong community and social media presence used to be the main driving forces behind the so-called “meme coin.” But now that presence seems weak, which is worrying for any entity associated with Dogecoin.
Futures Trading Volume in Freefall
Another concerning measure is the drop in Dogecoin’s futures trading volume. In November 2024, Dogecoin’s total futures trading volume was a staggering $58.2 billion. By February 2025, though, that volume had tumbled to just $992 million. This 98% collapse demonstrates the vanishing interest in Dogecoin from not just institutional traders but also large investors, who seem to be signaling a lack of confidence in the cryptocurrency’s future.
#Dogecoin $DOGE total futures trading volume has dropped from $58.2 billion in November to just $992 million today! pic.twitter.com/klpNOvU4sq
— Ali (@ali_charts) February 26, 2025
Futures contracts enable traders to speculate on the price movements of future assets. They are often seen as an indicator of how the market is feeling. When Dogecoin’s future was trading, it was a clear sign that it was prosperous. Now, fewer traders are taking on that risk, and its volume seems to have declined along with the number of traders who are even interested in Dogecoin. This is feeling very much like a double whammy.
A Massive Drop in Open Interest
The outstanding contracts or positions in a futures market total to what is known as open interest. With Dogecoin, this open interest has shrunk significantly. Over the past three months, Dogecoin futures open interest has decreased by 67%. In contrast to an all-time high of $4.07 billion, this open interest is down to $1.33 billion today. This sharp drop in open interest is another sign that confidence is waning in the cryptocurrency’s future price movements.
#Dogecoin $DOGE open interest has declined by 67% over the past three months, dropping from an all-time high of $4.07 billion to just $1.33 billion today! pic.twitter.com/yRXjqqljNC
— Ali (@ali_charts) February 27, 2025
Open interest decreasing indicates that traders have closed out many positions or are opting not to enter new positions. Reasons can vary widely and might include Dogecoin losing value, limited market catalysts, or overall broader market conditions making traders cautious.
New Address Creation Plummets
The formation of fresh addresses on the Dogecoin network has also significantly reduced. In November 2024, the quantity of new addresses being formed daily stood at 1.29 million. However, by the end of February 2025, this figure had plummeted to a mere 30,815—a staggering drop of over 97%. This nose-dive in new address formation is particularly troubling because it indicates that the Dogecoin ecosystem is not attracting fresh users, which, in turn, appears to be quashing any growth potential for the network.
#Dogecoin $DOGE network has significantly contracted, with new address creation dropping from 1.29 million in November to just 30,815 today! pic.twitter.com/XHh1EZO34d
— Ali (@ali_charts) February 26, 2025
When a cryptocurrency undergoes a drop in fresh address formation, it indicates a stop in new adoption, which is vital for any blockchain to be vibrant. The slowdown in new user growth for Dogecoin is a telltale sign of the more extensive problems the meme coin is now experiencing as its appeal diminishes and the community around it grows less committed.
Conclusion: Denial Among Long-Term Holders?
Dogecoin’s network activity, trading volume, open interest, and new address creation have all taken a severe nosedive. This paints quite a pessimistic picture for Dogecoin as a profitable investment. The coin has absolutely dismal activity metrics, and this has been reflected in its price performance over the past months. I would not touch it with a ten-foot pole, and I am sincerely advising investors to take any remaining Dogecoin they have and cash it out or convert it to a more respectable stablecoin.
Dogecoin might keep encountering some difficulties in the months ahead if it doesn’t have any new market catalysts or renewed community enthusiasm. Being a meme coin and having such a volatile and speculative nature, it makes sharp declines in market interest seem almost inevitable that Dogecoin will see those kinds of declines. And unless something changes soon, it seems that the viability of Dogecoin could be in trouble.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
