Dogecoin Dips 4% on May 16 — But Network Activity Skyrockets Nearly 990%! What’s Going On?

Updated

May 16, 2025

Gambar Dogecoin Dips 4% on May 16 — But Network Activity Skyrockets Nearly 990%! What’s Going On?

Jakarta, Pintu News – The Dogecoin network is showing increased activity and interest from investors, signaling the beginning of a potential new bull cycle for the DOGE price.

On the other hand, the crypto market in general is still on a positive trend. Ethereum even outperformed Bitcoin , fueling speculation that the altcoin season may be about to begin.

So, how is the Dogecoin price moving today?

Dogecoin Price Drops 4.66% in 24 Hours

On May 16, 2025, Dogecoin saw a 24-hour decline of 4.66%, with its price trading at $0.2249, or approximately IDR 3,700. During that period, DOGE reached a daily high of IDR 3,895 and dipped to a low of IDR 3,560.

At the time of writing, Dogecoin’s market cap stands at around $33.62 billion, with trading volume rising 17% to $2.53 billion within 24 hours.

What’s Driving Dogecoin’s Network Activity to Rise Sharply?

Data from Glassnode shows a significant spike in the number of active Dogecoin addresses, from 61,892 on May 7 to 674,527 as of May 14. This reflects an increase of almost 990% in just one week – a strong signal of increased user engagement and transaction volume on the Dogecoin network.

Not only that, this surge in activity has also been accompanied by increased interest in the Dogecoin futures market.

The latest data noted that open interest (OI) for DOGE futures contracts rose by more than 66% in the past week – from $989 million to $1.65 billion between May 7 and 14.

This sharp increase in leveraged positions indicates increased confidence from traders as well as expectations of more volatile DOGE price movements in the near future.

Coinbase’s cbDOGE Support Drives Dogecoin Momentum to New Levels

Dogecoin’s positive momentum was further reinforced by Coinbase’s recent announcement of support for wrapped Dogecoin on the Base network, Coinbase’s Layer-2 Ethereum solution.

In an update on May 14, Coinbase Assets revealed that cbDOGE – a wrapped version of Dogecoin – would soon be launched alongside several other assets.

cbADA, cbDOGE, cbLTC, cbXRP coming soon.

These assets are not yet live or available. We will announce their launch at a later date.
— Coinbase Assets 🛡️ (@CoinbaseAssets) May 13, 2025

“cbADA, cbDOGE, cbLTC, cbXRP coming soon. These assets are not yet active or available. Launch dates will be announced later,” Coinbase Assets wrote.

While an official release date is yet to be determined, this announcement is a strong signal of increased institutional and ecosystem support for DOGE.

Wrapped assets like cbDOGE provide additional utility by enabling interoperability between networks and integration within the DeFi ecosystem – opening up new demand opportunities.

In comparison, Coinbase’s wrapped Bitcoin product, cbBTC, managed to reach a market capitalization of $1 billion in just 57 days since launch.

With a growing Base network, the arrival of cbDOGE is expected to bring greater liquidity and wider exposure for Dogecoin – the king of meme coins.

This strategy is similar to what Coinbase did when it released cbBTC support on the Solana network , which expanded access to Bitcoin for its users.

Analyst Sentiment Begins to Turn Bullish: Dogecoin Ready to Enter the Next Bull Cycle?

Analysts’ sentiment towards Dogecoin seems to be increasingly positive. Galaxy, one of the most recognized crypto market watchers, mentioned that the DOGE price might be entering its “third bull cycle”.

May I present you $DOGE.

Yet another case of ''nobody talks about it until everybody talks about it''.

Curious what will be the catalyst this time.
We will see.#dogecoin pic.twitter.com/H4RoY4cr7f
— Galaxy (@galaxyBTC) May 14, 2025

According to him, Dogecoin is again showing a classic pattern: being ignored in silence, then suddenly surging sharply as attention and prices increase.

“Allow me to introduce DOGE. A classic case of ‘no one talks about it… until everyone talks about it’,” Galaxy wrote in a post on X (Twitter).

Dogecoin has already surprised the market several times in previous crypto cycles. Public endorsements from major figures – most notably Elon Musk – have also significantly boosted the price of DOGE in the past.

But now, Musk’s influence over the meme coin is waning, leaving DOGE entirely in the hands of investors.

However, the combination of Dogecoin’s surge in network activity, increased interest in its derivatives, and the development of infrastructure like cbDOGE suggests that Dogecoin could be poised to make a comeback.

If this trend continues and Coinbase successfully launches cbDOGE on the Base network, Dogecoin has a chance to gain more DeFi integrations, increased trading volume, and renewed interest from the public.

However, there are still risks to watch out for, including macroeconomic pressures. Therefore, investors are advised to always conduct in-depth research before making a decision.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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