Addresses Hodling Dogecoin Takes a Massive Hit: Here\'s Why
Recently, the number of addresses hodling Dogecoin (DOGE) has experienced a significant decline, impacting market sentiment. A recent chart pointed out that over the last three months, the number of addresses holding Dogecoin went from 4.55 million addresses to a low of 3.89 million. But what\'s causing this shift, and what does it mean for the future of this popular meme coin?
Understanding the Drop in Dogecoin Holders
Several factors could be contributing to this decrease in Dogecoin holders. Market volatility, profit-taking after periods of growth, and shifting investor sentiment all play a role. While the number of addresses *holding* Dogecoin may be down, understanding *active* addresses provides a more nuanced picture.
Dogecoin Active Addresses Tell a Different Story
Interestingly, even with fewer addresses holding Dogecoin long-term, on-chain activity shows signs of life. Dogecoin\'s on-chain activity has been steadily climbing, but the recent jump in active addresses represents a notable acceleration. We\'re not talking about minor fluctuations; data from [Source] shows a significant upswing. This aligns with previous periods of increased activity; for example, Dogecoin’s active addresses surged 400%, indicating increased user participation. Capital inflows in late 2025 corresponded with price spikes, showing market interest.
Indeed, recent data indicates that Dogecoin has witnessed a massive spike in its active addresses, providing a bullish outlook for the foremost meme coin. Dogecoin’s active addresses have hit an all-time high, surpassing 1.33 million daily participants. This surge reflects heightened network demand, a bullish indicator.
Conflicting Signals: Holding vs. Active Addresses
The apparent contradiction between fewer long-term holders and a surge in active addresses highlights the dynamic nature of the cryptocurrency market. It suggests that while some investors may be selling off their Dogecoin, others are actively trading and using the cryptocurrency for transactions. This increased activity could be driven by various factors, including meme culture, speculation, and increasing adoption by businesses. According to recent data from IntoTheBlock, the number of addresses holding Doge has reached 6.56 million, marking a 20% increase in just eight months. This suggests recovery is possible.
Dogecoin\'s Bullish Potential and Influencer Support
Despite the decrease in holders, Dogecoin continues to benefit from the backing of influential figures. Thanks to the backing of influential pro-crypto figures like Donald Trump and Elon Musk, Dogecoin (DOGE) has continued its bullish trajectory.
Based on this development, the DOGE price could see positive movement. Some analysts suggest Dogecoin price eyes a bounce to $0.40 after a spike in the number of daily active addresses to the highest level since November 2025. The active address count is a key indicator to watch.
Conclusion
While the drop in addresses hodling Dogecoin is noteworthy, it\'s essential to consider the broader context of increased active addresses and ongoing support from influential figures. This mixed signal paints a picture of a cryptocurrency undergoing a period of transition, with potential for both volatility and future growth. Investors should carefully monitor both holding and active address metrics, along with broader market trends, to make informed decisions about their Dogecoin investments.