The Dogecoin Network Sees Unprecedented Growth
The Dogecoin network has registered an unprecedented 990% surge in inactive addresses over one week, from 61,892 as of May 7 to 674,527 through May 14, based on Glassnode data. This rapid escalation among users shows a renewed interest in the meme cryptocurrency as there is increased speculation about a likely new bullish trend.
At the same time, overall open interest for Dogecoin futures contracts rose sharply, gaining more than 66% over the same period. From $989 million on May 7, open interest rose to $1.65 billion through May 14. This is an indicator of increased traders’ trust and preparation for further price surges.
Source: Glassnode
Bitcoin and Ethereum Performance
Whereas Bitcoin remains relatively stable, Ethereum’s better performance has prompted certain analysts to speculate that it may be altcoin’s next turn to control trade volumes anew. Dogecoin seems to be well ahead in positioning itself as a challenger for renewed interest during any such transition.
cbDOGE Anticipation Aligns with Derivatives Boom
Coinbase has been at the forefront when it comes to the renewed interest in Dogecoin. On May 14, Coinbase Assets announced that cbDOGE, a wrapped Dogecoin, was going to be launched on the Base network, Coinbase’s Layer-2 Ethereum solution. The announcement, not live yet, already fueled expectations within both trading and DeFi communities.
“cbADA, cbDOGE, cbLTC, cbXRP coming soon. These assets are not yet live or available. We will announce their launch at a later date,” said Coinbase.
With Base taking broader usage, the fact that Dogecoin is now part of this wrapped asset array implies institutional endorsement for the token at a new level.
Such wrapped assets like cbDOGE enable cryptocurrency to move between blockchains and into decentralized financial systems. Coinbase’s initial launch of cbBTC, its wrapped Bitcoin, took 57 days to achieve a $1 billion market capitalization—a path that is projected by some to follow cbDOGE.
Sentiment Grows That DOGE Could Start New Price Cycle
A well-known crypto industry analyst known as “Galaxy” has opined on the trend, stating that Dogecoin might now be heading into its “third bull cycle.”
“May I present you DOGE. Yet another case of ‘nobody talks about it until everybody talks about it,” said the analyst.
Source: Galaxy
In the past, Dogecoin has enjoyed high-profile backing—especially from Elon Musk. Recent trends, however, suggest that the influence of Musk over meme coins is decreasing, meaning that DOGE now relies further on real usage growth and infrastructure development.
Dogecoin’s most recent momentum—seen through its on-chain activity, derivatives interest, and wrapped asset incorporation—might be the beginning of a larger trend toward a shift in the way the token is valued and utilized. With cbDOGE set to launch as planned, it may add a liquidity injection and fuel more decentralized applications dealing with DOGE.