The well-known cryptocurrency inspired by memes, Dogecoin ($DOGE), has been experiencing a surge in on-chain activity of late.

This has meant new attention from both traders and long-term investors. Santiment, a firm that tracks cryptocurrency metrics, reports that the number of daily active addresses on the Dogecoin network has surged by an eye-catching 400% to almost 395,000.

Actively tracked by crypto analytics firm Santiment, the renowned meme-inspired cryptocurrency, Dogecoin (CRYPTO: $DOGE), has seen a significant surge in on-chain activity.

This has brought renewed attention from both traders and long-term investors.

According to a report by cryptocurrency analytics firm Santiment, the number of daily active addresses on the Dogecoin network has skyrocketed by a staggering 400% to reach nearly 395,000. This impressive increase has led to discussions about whether Dogecoin is in the process of making a comeback.

Despite the fact that Dogecoin's performance over the past few months has been largely dictated by the overall meme coin environment, which has cooled since its summer highs, recent price action and on-chain metrics suggest that the coin still has plenty of upside potential for investors.

Dogecoin Reclaims Support As Technical Indicator Comes Into Focus

Dogecoin has managed to regain the support of its seven-month trendline, an important technical indicator that has many traders watching closely. This could signal a turnaround for the meme currency, if not a full-on pump, then at least a moment of price stabilization after a prolonged descent.

At present, Dogecoin is priced at around $0.061, down approximately 75% from its all-time high of $0.731, which it reached in the fourth quarter of 2024. What is especially noteworthy is that Dogecoin has recovered its trendline support, even though it is down considerably from its all-time high. This is a strong indication that, despite the turbulence it has faced, the coin is holding a lot of value right where it is at present. For many, this begs the question: Is now a good time to start acquiring $DOGE tokens for a long-term hold?

Some analysts believe that the subsiding memecoin frenzy might be a blessing in disguise for Dogecoin. They believe that the craziness of the memecoin market with coins like Pepe (PEPE) and Bonk (BONK) has now ended, and we are moving into a less volatile and more sustainable environment for cryptocurrencies.

This lack of hype might allow for stabilization in the value of Dogecoin, giving it more room to grow.

With the hype around memecoins subsiding, the future price movements of Dogecoin seem less likely to be driven by the same chaotic shifts in social media trends and celebrity endorsements that have historically made it look, to some investors, like more of a traditional investment.

What began as a cryptocurrency sparked by a meme in 2013 has since become a coin with a devoted community, a top 10 market cap, and recognition among not just crypto investors but everyday people.

At the peak of the memecoin mania, Dogecoin was arguably one of the top memecoins, especially since it had the backing of high-profile figures like Elon Musk, who was frequently mentioning the coin in his tweets. This led to some pretty wild price movements, arguably linked to Musk's involvement, and at one point, when the meme market was at its peak, Dogecoin went on to reach a new all-time high.

However, when the speculative craze surrounding meme tokens seemed to be winding down, many of these coins, including Dogecoin, were taking steep falls in value. At the top, $DOGE had not just reached but had been said to be “soaring to nearly $0.75,” and not just fell back but “shed most of its gains” when it returned to the bottom. Despite this steep decline, a loyal community continues to follow Dogecoin.

That community turns to the official Dogecoin Twitter (NYSE:X) account for the latest news. And while it’s not quite exclusive, Dogecoin’s community still advocates for its use as a “medium of exchange and store of value.” Can you believe these people?

A blessing in disguise might be coming for Dogecoin as the memecoin loss of hype moves ever closer. With the market turning away from tokens that can only hope to be part of the next meme, we might just be moving toward a time when the only coins that get bought are those with signs of actual utility or long-term potential. By those measures, Dogecoin should survive in style.

Dogecoin: A Glimpse Into Long-Term Investment Potential

Now that the meme coin fervor driving Dogecoin to great heights may be over, this could present an opportune moment for discerning investors to purchase what might be an undervalued asset.

As $DOGE seeks to establish itself within the market, reclaiming key levels of support and enjoying a not-insignificant increase in activity, the cryptocurrency seems on track to carve out a more stable and sustainable price path going forward.

Additionally, Dogecoin remains an asset in the crypto sphere because of its market cap, community, and recognition. It stands apart from many other cryptocurrencies for its widespread acknowledgment and ease of use, despite its seemingly basic functionality. Its loyal community makes it all the more endearing;