Dogecoin Active Addresses Surge 990% Amid Coinbase’s cbDOGE Plan

The Dogecoin network is witnessing increased activity and investor interest, signaling the first signs of a potential new price appreciation cycle for DOGE.

Meanwhile, the broader cryptocurrency market remains in an upward trend, with Ethereum (ETH) outperforming Bitcoin, leading many to speculate that an altcoin season may be imminent.

Dogecoin Network Records Increased Activity: What's Driving the Boom?

Data from Glassnode shows the number of Dogecoin active addresses increased from 61,892 on 05/07 to 674,527 on 05/14. This represents nearly a 990% increase in one week, indicating renewed user participation and trading volume.

A significant increase in futures market interest accompanied the network usage growth. According to recent data, the open interest (OI) in DOGE futures increased by over 66% in the past week, specifically rising from $989 million to $1.65 billion between 05/07 and 05/14.

The strong increase in leveraged positions indicates growing trader confidence and price volatility predictions.

Adding momentum is Coinbase's announcement of upcoming Dogecoin wrapping support on the Base network. Coinbase Assets revealed that cbDOGE, a wrapped version of Dogecoin, is among the tokens set to launch soon on Base, Coinbase's Ethereum Layer-2 scaling solution.

"cbADA, cbDOGE, cbLTC, cbXRP coming soon. These assets are not yet active or available. We will announce the launch date later," Coinbase Assets shared in a 05/14 update.

Although the launch date remains unconfirmed, this move indicates increasing support from institutions and ecosystems for DOGE.

Wrapped assets enhance token utility by enabling cross-chain interactions and DeFi use cases, potentially opening new demand streams. Coinbase already has a Bitcoin wrapped product, cbBTC, which reached a $1 billion market cap in 57 days.

As Base continues to attract attention, cbDOGE could bring more liquidity and focus to the meme coin king. Coinbase similarly did this with cbBTC, launching native support for its Bitcoin wrapped product on Solana, expanding Bitcoin access for users.

Analyst sentiment also seems to be becoming more optimistic. Galaxy, a famous cryptocurrency market observer, suggested that DOGE might be entering its "third price appreciation cycle". The analyst pointed out Dogecoin's familiar pattern of quietly building before exploding in attention and price.

"Let me introduce you to DOGE. Another case of 'no one talks about it until everyone talks about it,'" Galaxy wrote in a post on X (Twitter).

Dogecoin has repeatedly exceeded expectations in previous cryptocurrency cycles. Notable endorsements, especially from Elon Musk, have also benefited DOGE's price in the past.

However, Musk's influence on meme coins is gradually fading, leaving Dogecoin in the hands of investors.

Dogecoin's recent increase in network activity, derivative interest, and infrastructure development suggests the token might be preparing for another standout moment.

If this trend continues and Coinbase successfully launches cbDOGE on Base, Dogecoin could benefit from enhanced DeFi integration, renewed trading volume, and public attention.

However, risks remain, including macroeconomic obstacles, meaning investors should conduct their own research.