Popular memecoin Dogecoin (DOGE) has been trading sideways, above the 200-day exponential moving average (EMA) since Jan. 7. DOGE price is down 0.4% over the last week and 14% over the last month, and even though the technical setup hints at further losses for DOGE, the recent spike in network activity is interesting.
Dogecoin network activity surges
Dogecoin is experiencing a significant increase in its network activity. Data from market intelligence firm IntoTheBlock shows over 890,000 new Dogecoin addresses have been created over the past week.
This increase in new addresses coincides with an 86% adoption rate as the new users execute their first transactions on the blockchain.
Dogecoin: New addresses. Source: IntoTheBlock
Additional data from Santiment shows a spike in daily active addresses (DAA), which increased from 124,240 on Jan. 23 to more than 498,000 on Feb. 2.
Dogecoin network DAA. Source: Santiment
This resurgence in network activity could be due to the release of the iconic Doom video game on the Dogecoin blockchain and the upcoming DOGE-1 launch.
DOOM meets Dogecoin! Developer #minidogeart deploys the iconic 1993 DOOM game on the Dogecoin blockchain using Ordinals technology. Now, gaming data is fetched entirely from Dogecoin network, showcasing the potential of blockchain for preserving digital assets.
— BlockVoyager (@BlockVoyagerAIO) January 24, 2024
A third factor is the increasing use of Dogechain, a layer-2 blockchain built on the Dogecoin network.
It is important that creativity brings new victories and with them new users – Dogechain#Dogechain #Dogecoin pic.twitter.com/yjSjsNncqz
— DogeChainNews (@DogeChainNews1) February 2, 2024
These factors have helped generate interest in the Dogecoin network, and if this trajectory remains, DOGE price could react if investors begin to take positions in the coin.
However, the technical setup suggests that the price is poised for a deeper correction from the current levels.
Related: Price analysis 2/2: BTC, ETH, BNB, SOL, XRP, ADA, AVAX, DOGE, DOT, LINK
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