The Dogecoin community is experiencing a resurgence in exercise and investor curiosity, signaling the early indicators of a potential new bull cycle for the DOGE worth.
Meanwhile, the broader crypto market stays bullish, with Ethereum (ETH) outperforming Bitcoin, prompting hypothesis that an altcoin season could also be imminent.
Dogecoin Network Records Rising Activity: What is Driving The Surge?
Data on Glassnode exhibits that Dogecoin energetic addresses rose from 61,892 on May 7 to 674,527 as of May 14. This represents a surge of practically 990% in a week, suggesting renewed person engagement and transactional quantity.
A dramatic rise in futures market curiosity accompanies this surge in community utilization. According to latest knowledge, open curiosity (OI) in DOGE futures has jumped by greater than 66% over the previous week. Specifically, it climbed from $989 million to $1.65 billion between May 7 and 14.
The sharp improve in leveraged positions signifies rising dealer confidence and anticipation of volatile price action.
Further fueling momentum is Coinbase’s announcement of upcoming wrapped Dogecoin help on the Base network. Coinbase Assets revealed that cbDOGE, a wrapped model of Dogecoin, is amongst a number of tokens that may quickly launch on Base, Coinbase’s Layer-2 Ethereum scaling solution.
“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 shared in a May 14 replace.
While the launch date has not but been finalized, the transfer alerts rising institutional and ecosystem help for DOGE.
Wrapped belongings improve token utility by enabling cross-chain interoperability and DeFi use circumstances, doubtlessly unlocking new demand streams. Coinbase already has a wrapped Bitcoin product, cbBTC, which attained a $1 billion market cap in 57 days.
As Base continues to realize traction, cbDOGE may deliver extra liquidity and publicity to the king of meme coins. Coinbase did the identical with cbBTC. It launched native support for its wrapped Bitcoin product on Solana, increasing Bitcoin entry for customers in the method.
Analyst sentiment seems to be turning extra bullish as effectively. Galaxy, a well-followed crypto market observer, advised that the DOGE worth could also be getting into its “third bull cycle.” The analyst factors to the acquainted sample of Dogecoin flying underneath the radar earlier than a fast surge in consideration and worth.
“May I present you DOGE. Yet another case of ‘nobody talks about it until everybody talks about it,’” Galaxy wrote in a submit on X (Twitter).
Dogecoin has repeatedly defied expectations throughout previous crypto cycles. High-profile endorsements, notably from Elon Musk, have additionally boded effectively for the DOGE worth in the previous.
However, Musk’s influence on meme coins is dissipating, leaving Dogecoin in investors’ hands.
Dogecoin’s latest surge in community exercise, derivatives curiosity, and infrastructure developments suggests the token could also be gearing up for one more highlight second.
If the development continues and Coinbase efficiently launches cbDOGE on Base, Dogecoin may benefit from elevated DeFi integration, buying and selling quantity, and renewed public consideration.
However, dangers stay, together with macro headwinds, that means buyers ought to conduct their analysis.
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