Dogecoin's (CRYPTO: DOGE) blockchain has seen a massive surge in network activity, with the cryptocurrency experiencing record highs in both active and new addresses on Thursday.

Here's a closer look at the trends and what they could mean for the meme coin's price.

What Happened: Dogecoin's network saw 1.6 million active addresses—wallets sending or receiving DOGE—which is the highest daily figure in the network's history, according to blockchain analytics firm Santiment.

This shows a sudden wave of transactional engagement. In most cases, a rise in active addresses indicates increased user participation, renewed speculation or even network-level events such as airdrops or integrations.

However, in Dogecoin's case, the source of the spike remains unclear, which raises questions about the quality and longevity of the activity.

The new address count also spiked on Thursday, with over 1.2 million new wallets being created.

"This is heating up. We haven't seen this level of new Dogecoin addresses in over a year, and it's getting close to the blow-off top in mid-2023," Santiment said in a recent note.

According to the firm, new address growth of this magnitude usually coincides with bullish sentiment, as seen during Dogecoin's explosive rallies in early 2021 and mid-2023.

But past cycles show that such bursts can also result from automated wallet generation—especially during viral campaigns or farming initiatives. Without sustained follow-through, these surges tend to fade rapidly and have a limited impact on long-term price appreciation.

Despite Dogecoin's fluctuating market value, one trend has remained constant: long-term address growth. The total number of DOGE wallets now stands at nearly 80 million, showcasing sustained adoption and on-chain expansion.

Unlike active or new address spikes, which are often volatile, the total address metric has displayed consistent growth since 2014. This signals Dogecoin's lasting appeal as a speculative asset and tipping currency, even if it remains a meme coin in the eyes of institutional investors.

Related Link: Want to know what else is heating up in the markets? Benzinga has you covered.

Dogecoin Price Action: As on-chain metrics hit record highs, Dogecoin's price failed to break out meaningfully.

The meme coin was down 0.83% over the last 24 hours and traded at $0.216 at the time of writing. It pulled back from a recent local high of $0.26.

The 4-hour chart showed a recent descending triangle breakout, which is typically a continuation pattern and a bullish signal. However, the breakout lacked strong volume support and lost momentum quickly. The Relative Strength Index was at 45, which could be seen as weak buying pressure and pointed to indecision.

This isn't the first time Dogecoin's network usage has outpaced its price performance. In 2021 and 2023, similar spikes in address activity were later followed by either sideways trading or minor corrections.

One possible explanation for the lack of price response might be that high address counts don't necessarily translate to market conviction. Many newly created addresses could hold negligible balances or engage in one-off transactions. Without substantial capital inflow or demand-side catalysts, price might lag behind network expansion.

Also, DOGE's inflationary supply model—with 10,000 new coins being minted every minute—could exert constant sell pressure, making it harder for price to respond positively unless offset by sustained demand.