Dogecoin Sees Record Wallet Activity As Community Awaits ETF Decision

Wallet trackers showed increased activity as Dogecoin active addresses reached 1.6 million. This surge coincided with DOGE trading around $0.169, as market participants awaited the SEC's decision on the first spot Dogecoin ETF, expected in early August.

In Telegram groups, the atmosphere was generally calm yet optimistic. One developer jokingly remarked that it felt "quiet like 2021, right before the fireworks."

Surging Wallet Metrics Indicate Underlying Demand

Blockchain data revealed a pattern of wallets accumulating DOGE. Even smaller wallets were participating, with addresses holding one Dogecoin or less surpassing ten million, reaching a new all-time high.

Developers highlighted the ongoing "Libdoge" upgrade, which aims to reduce node synchronization time by 30%. This update was deployed to miners on June 16th. The performance improvement has led to a reduction in average block intervals to 59 seconds for three consecutive days, compared to the usual 65 seconds.

These faster block times, combined with the anticipation surrounding the ETF, have revitalized older coins. Dormant Dogecoin that had been inactive for over two years were moved for the first time since 2023, suggesting that long-term holders are adjusting their positions.

ETF Prospects and Market Positioning

The proposed VanEck and Galaxy spot Dogecoin ETFs are currently under review by the SEC, with a final feedback deadline of July 28th. K33 Research analysts suggest that, if approved, the fund could attract $700 million within its first quarter, potentially mirroring the initial inflows observed in Solana's ETF launch in May.

Spot market liquidity remains healthy. Dogecoin recovered 4.7% from an intraday low of $0.164, closing near $0.171, despite overall market weakness. Furthermore, Glassnode's entity-adjusted flow indicates a net outflow of 74 million coins over five sessions, suggesting that holders are withdrawing assets from exchanges in anticipation of a positive catalyst.

Key Levels to Watch

The immediate outlook hinges on two key price levels: overhead resistance at $0.187 and support at $0.165. A daily close above $0.187 could trigger a rally towards $0.21. Conversely, a break below $0.165 could prompt momentum traders to target $0.148.

Wallet activity, block processing speed, and ETF-related news will likely drive market sentiment in the short term.

The next six weeks are crucial in determining whether DOGE achieves regulated investment status or remains on the sidelines.