Active Dogecoin accounts hit a high of 157,000 within a day, sparking curiosity about the surge in usage.
In the world of cryptocurrencies, Dogecoin (DOGE) has been making waves due to a significant increase in network activity, even during a market-wide price decline. This growth, driven primarily by heightened mining engagement and broader community participation, could potentially signal a shift in the meme coin's price dynamics.
Causes:
The surge in Dogecoin mining can be attributed to several factors. Firstly, Dogecoin's short block time (approximately 1 minute) and merged-mining with Litecoin via the Scrypt algorithm make it an attractive option for miners. The daily rewards, which can reach up to about $4,999 as reported in August 2025, combined with hardware, merged-mining, and cloud mining options, have lowered the barriers to entry, attracting both new and experienced miners.
Moreover, key on-chain indicators such as new and active addresses have seen a significant increase, suggesting more users interacting with the network even during price corrections. The rise in zero balance addresses may indicate speculative or dormant accounts becoming active or new wallets being created.
Implications:
The increased activity amid price drops reflects continued community interest and network robustness, suggesting that Dogecoin is more than purely speculative hype. This activity supports longer-term ecosystem health and may attract further investment or developer interest.
From a technical analysis perspective, Dogecoin is currently undergoing a consolidation (bull flag) pattern, which could indicate a pause before a potential upward breakout. The recent increase in network activity has backed fresh strength in price, supporting this possibility.
Potential impact on Dogecoin price:
The network activity surge, combined with mining profitability and technical bullish indicators, suggests Dogecoin could stabilize and potentially rally after a price drop. Price predictions for August 2025 suggest a trading range roughly between $0.16 and $0.28, with potential to challenge resistance at about $0.25-$0.28 if bullish momentum holds.
However, it's important to note that price volatility remains high, and while network activity provides a positive foundation, price could still swing with broader market conditions and speculative sentiment.
In conclusion, the increased Dogecoin network activity amid a price drop is driven by strong mining incentives and rising user engagement, which strengthens network fundamentals and technical setups, potentially supporting a price stabilization or upward move in the near term.
As of press time, the current price of Dogecoin is $0.1996, reflecting a 2.19% decrease in the last 24 hours. The number of active addresses in the Dogecoin ecosystem might indicate potential buying and selling activity. It remains to be seen if large holder investors will act to stabilize the price of Dogecoin again. If Dogecoin fails to reclaim the $0.20 resistance zone, its next support lies at $0.191. However, over one billion DOGE have been purchased by large holder investors when the price dropped to $0.194, suggesting potential intervention to stabilize the price. Some analysts, however, consider the massive spike in Dogecoin accumulation under current bearish conditions risky. The surge in Dogecoin network activity suggests increased interest from investors in the cryptocurrency market.
The increased Dogecoin network activity could attract more crypto trading, with potential investments from whale investors, given the cryptocurrency's improved price dynamics and technically bullish indicators. However, the price volatility in the finance sector might lead to swings, even with sustained network activity, as large holder investors may or may not intervene to stabilize the price in future trading.
