Dogecoin (DOGE) active wallet addresses have skyrocketed massively

This swift rise in new addresses has triggered rumors about a possible surge in demand and price. New addresses on Dogecoin typically indicate increased retail interest

Crypto analyst Ali Martinez has revealed that active wallet addresses on the Dogecoin (DOGE) network have today, March 15, seen a 400% growth.

According to data shared by Martinez, the number of addresses on the DOGE network has reached 395,000. The analyst shares that the figures were shared by the Santiment crypto analytics platform.

On-chain data from @santimentfeed shows that active addresses on #Dogecoin $DOGE network saw a 400% growth today, to nearly 395,000.

Dogecoin’s new addresses hit 395,000

The blazing speed at which the new addresses on Dogecoin are growing has triggered rumors about a possible surge in demand and price.

Usually, new addresses on crypto networks are used to measure the level of activity, liquidity and interest in an asset. A major indicator that an asset could be experiencing rising adoption is seen when an asset’s new addresses are increasing.

In addition, new addresses are used to gauge the level of retail interest in an asset. In essence, when an asset is gaining more users, it signifies that the asset could be experiencing more price volatility due to the increased participation of retail traders.

As the price of cryptocurrencies is driven by supply and demand, an increase in new addresses may result in a shift in price trends.

DOGE price updates

The rise in on-chain activity in the DOGE network has effected a positive change in the asset’s price. Today, at press time, the asset’s price is standing at $0.1722, after seeing a 1.9% surge over the past 24 hours. This price jump aligns with the new address growth. However, time will tell whether the surge in new wallets could lead to a sustainable price uptrend.

The cryptocurrency has been struggling with a downward movement over the past month. In the monthly and weekly timeframes, the token’s price has been down 33.4% and 12.2% respectively.

Furthermore, Open interest (IO) on DOGE has declined by 1.9% over the past 24 hours, indicating low interest among traders in the asset. A decrease in IO shows a decline in trader confidence, indicating that fewer investors are willing to create new positions in the market at the moment. With this less enthusiasm in the market, the asset may struggle to maintain upward movement, particularly if selling pressure prevails.

The surge in new Dogecoin wallets is normally associated with retail speculation or a key activity that could lead to a price upturn. In short, the emergence of new wallets could have been created by short-term speculators or long-term crypto holders. If the former is the case, the rise in new wallets could cause heightened price fluctuations instead of a sustained price rise, possibly causing short-term volatility without important upward movement.

Of late, DOGE has been struggling with downturns. The tremendous surge in new wallets brings hope about an imminent breakout. However, this can happen if purchasing pressure piles up and these new wallets are true long-term holders with an interest in buying.