Since the beginning of 2025, Dogecoin (DOGE) has seen a remarkable increase in user adoption, with over 29,000 new wallets being created. This data, provided by the on-chain analysis firm Santiment, sheds light on the growing interest in Dogecoin and how it stacks up against other leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), XRP, Cardano (ADA), and Chainlink (LINK).
Dogecoin Hodlers On The Rise
The start of 2025 has been marked by significant price fluctuations in the crypto market, impacting the number of holders across various assets. According to Santiment, a surge in wallet numbers often signals a community’s confidence in a cryptocurrency’s long-term potential. In contrast, a decline might suggest excessive fear, uncertainty, and doubt (FUD), potentially presenting a buying opportunity for contrarian investors.
Significant Wallet Growth in Major Cryptocurrencies
Santiment’s analysis reveals that Ethereum and XRP have experienced notable increases in wallet numbers at the start of 2025. Ethereum saw a substantial rise with an additional 645,000 wallets, while XRP recorded 58,000 new wallets. Meanwhile, Bitcoin added 102,000 wallets, and Cardano experienced a smaller increase of 2,800. However, Chainlink saw a decrease of 3,300 wallets during the same period. Trends indicate that XRP wallet holders grew by 1.0%, Ethereum by 0.5%, and Cardano by 0.1%, while Chainlink decreased by 0.5%.
Dogecoin’s Continued Growth
Although specific numbers for Dogecoin were not included in the chart, there is a clear uptrend in its wallet growth, highlighting the increasing interest in DOGE among investors and enthusiasts. This rise in wallet numbers suggests a strengthening community and potential for future growth.
Decline in Trading Volumes Across the Crypto Market
Despite the positive developments in wallet growth, Santiment’s analysis points out a decrease in overall trading volumes since mid-December 2024. Meme coins like Dogecoin have been particularly affected, experiencing a drop in speculative-driven trades. The trading volume for the top 10 cryptocurrencies has declined by an average of 13%, with Ethereum facing the steepest reduction at 17%. Exchanges such as Binance and Coinbase reported decreased spot trading volumes of 15% and 12%, respectively. Analysts attribute this decline to seasonal factors, reduced activity from large investors (whales), and uncertainties surrounding upcoming regulatory changes.
MVRV: An Indicator of Potential Opportunities
Santiment highlights the Mean Value to Realized Value (MVRV) metric, which tracks average trader returns. The 30-day returns for most active wallets are currently in negative territory, presenting potential opportunities for contrarian investors. Dogecoin’s MVRV stands at -8.89%, indicating a “blood in the streets” moment where adding to or opening new positions may carry less risk.
Market Outlook and Influencing Factors
Looking ahead, Santiment emphasizes the multifaceted nature of the current market, shaped by regulatory changes, institutional strategies, and varying risk appetites. The firm notes the pro-crypto sentiment in the incoming Trump administration, tighter regulations in global markets, and the evolving role of large-scale investors in influencing price dynamics. Investors are advised to monitor whale behavior and market sentiments closely.
DOGE’s Technical Picture
From a technical standpoint, Dogecoin’s recent price movements have mirrored Bitcoin’s, dipping below critical Fibonacci levels on the 4-hour chart. DOGE breached the $0.373 mark (0.5 Fibonacci level) and tested the $0.346 threshold (0.382 Fib). However, it found temporary support at the 0.236 Fib line near $0.314, aligning with Bitcoin’s rebound. Reclaiming the 0.382 Fib level, approximately $0.346, is essential for DOGE to regain bullish momentum. Failure to do so could lead to further declines toward $0.26, a level last seen on December 20, 2024.
