Dogecoin's Network Activity Plummets 95% Amidst Price Drop

Dogecoin, the cryptocurrency that gained popularity as a meme coin, has recently faced a significant challenge with a substantial drop in network activity. According to an analyst, Dogecoin experienced a massive 95% decline in active addresses on its network, suggesting a considerable decrease in activity.

Crypto expert Ali Martinez noted that the drop in network activity began three months ago, with the number of active addresses surging to 2.4 million in November 2024 before plummeting by around 95% between December 2024 and February 2025. This decline in network activity was accompanied by a substantial drop in Dogecoin's price, which fell from $0.4868 to $0.196.

As Dogecoin's price started to recover, its network activity continued to suffer. On February 23rd, it was noted that the network only had 30,815 new addresses, confirming the slide in network activity. This decrease in network activity was reflected in Dogecoin's price movement, with many commentators arguing it's a sign of weak demand for the cryptocurrency.

Data also indicated a 2.67% decline in the percentage of long-term Dogecoin investors, suggesting less accumulation. Additionally, there was a drop of 11.81% in mid-term coin holders, indicating that they have already exited their positions. Conversely, there was a 107.45% increase in short-term holders, suggesting an increase in speculative trading.

Despite the recent challenges, some commentators expect a rebound in Dogecoin's price. CryptoELITES, for instance, expects Dogecoin to hit a new higher target, offering three price targets: $0.75, $1.5, and $5.