Dogecoin continues to lose ground due to a sharp decline in network activity and changes in holder structure, raising new questions about its long-term stability.
Decline in Network Activity
According to the latest data, Dogecoin's network activity has significantly declined over the past year. The volume of unspent transaction outputs (UTXO), a key metric of user activity, has fallen by 89% since late 2023. Active addresses have plummeted to 130,282 in February 2025, compared to 2.66 million in November 2024, representing a 95% drop. This indicates lower user engagement and a reduced number of transactions, raising questions about long-term demand.
Change in Holder Structure
Amid declining confidence in Dogecoin, the types of investors holding the cryptocurrency have changed. Long-term holders are down by 2.67%, while mid-term holders have decreased by 11.81%. This trend suggests that investors who previously held their positions for longer are now exiting the market, possibly due to concerns over price instability and confidence in ongoing growth.
Market Impact
A sharp 107.45% increase in short-term trading reflects traders' desire for immediate profits. Consequently, Dogecoin's price has begun to fluctuate wildly, reflecting market instability. This can complicate efforts to return Dogecoin to an upward trajectory, as its well-being depends on stability and long-term investor confidence.
Changes in Dogecoin's network activity and holder structure cast doubts on its future development and stability in the market. Debates among analysts revolve around the cryptocurrency's possible adaptation to new conditions, where renewed network activity will be key.
