Dogecoin (DOGE) Network Activity Surges as Coinbase Prepares to Launch cbDOGE

The cryptocurrency market continues to show strength, with Ethereum outperforming Bitcoin and setting the stage for a possible altcoin season. However, macroeconomic pressures and Bitcoin's limited gains despite a fifth attempt to break through the $71,000 resistance level suggest that the market may be entering a period of consolidation.

On the other hand, Dogecoin is displaying signs of a potential new bull cycle as investors pour back into the meme coin, indicated by a massive increase in the number of active Dogecoin addresses and a surge in open interest for DOGE futures contracts.

Dogecoin Price Today: 16/05/2025

Dogecoin fell by 4.66% in the past 24 hours, trading at $0.2249 or approximately IDR 3,700 by 10:07 AM Jakarta time on Tuesday (14/05/2025). In the 24-hour period, DOGE reached a high of IDR 3,895 and dipped to a low of IDR 3,560.

Dogecoin's market cap now stands at around $33.62 billion, while trading volume rose 17% to $2.53 billion in 24 hours.

What's Driving Dogecoin's Network Activity to Rise Sharply?

Data from Glassnode shows a significant spike in the number of active Dogecoin addresses, from 61,892 on May 7 to 674,527 as of May 14. This reflects an increase of almost 990% in just one week.

Furthermore, open interest for DOGE futures contracts also saw a surge of over 66% in the past week, as noted by the latest data.

The report by Galaxy also highlights a key pattern in Dogecoin's price movements, which might be entering its third bull cycle.

"Allow me to introduce DOGE. A classic case of ‘no one talks about it... until everyone talks about it'!" Galaxy wrote in a post on X.

Dogecoin is again showing a classic pattern: being ignored in silence, then suddenly surging sharply as attention and prices increase.

Coinbase's cbDOGE Support Drives Dogecoin Momentum to New Levels

Coinbase's introduction of support for wrapped Dogecoin on the Base network, Coinbase's Layer-2 Ethereum solution, is expected to drive Dogecoin's momentum to new levels.

In an update on May 14, Coinbase Assets announced that cbDOGE, a wrapped version of Dogecoin, would soon be launched alongside several other assets.

"cbADA, cbDOGE, cbLTC, cbXRP coming soon. These assets are not yet active or available. Launch dates will be announced later," Coinbase Assets wrote.

While an official release date is yet to be determined, this announcement signals increased institutional and ecosystem support for DOGE.

Wrapped assets like cbDOGE provide additional utility by enabling interoperability between networks and integration within the DeFi ecosystem, opening up new demand opportunities.

In comparison, Coinbase's wrapped Bitcoin product, cbBTC, managed to reach a market capitalization of $1 billion in just 57 days since launch.

With a growing Base network and the arrival of cbDOGE, expect greater liquidity and broader exposure for the meme coin.

This strategy is similar to what Coinbase did when it released cbBTC support on the Solana (SOL) network, expanding access to Bitcoin for its users.

Analyst Sentiment Begins to Turn Bullish: Dogecoin Ready to Enter the Next Bull Cycle?

Analysts' sentiment towards Dogecoin seems to be increasingly positive. Galaxy, one of the most recognized crypto market watchers, mentioned that the DOGE price might be entering its “third bull cycle”.

According to him, Dogecoin is again showing a classic pattern: being ignored in silence, then suddenly surging sharply as attention and prices increase.

"This is a BUFFERED post about DEVOLUTION and the third bull cycle of DOGE. It might be entering a period of consolidation as macroeconomic pressures continue to weigh on the market. Bitcoin also faces resistance at the $71,000 level despite a fifth attempt to break through," Galaxy stated.

Dogecoin has already surprised the market several times in previous crypto cycles. Public endorsements from major figures – most notably Elon Musk – have also significantly boosted the price of DOGE in the past.

But now, Musk's influence over the meme coin is waning, leaving DOGE entirely in the hands of investors.

However, the combination of Dogecoin's surge in network activity, increased interest in its derivatives, and the development of infrastructure like cbDOGE suggests that Dogecoin could be poised to make a comeback.

If this trend continues and Coinbase successfully launches cbDOGE on the Base network, Dogecoin has a chance to gain more DeFi integrations, increased trading volume, and renewed interest from the public.

Still, there are risks to watch out