The Dogecoin network has seen a surge in the number of newly created addresses, potentially pointing to future price growth.
The number of newly created addresses on the Dogecoin network hit a new high on January 29. According to data from IntoTheBlock shared by Ali Charts, users created 247,240 new Dogecoin addresses, surpassing the record of around 160,000 addresses set in 2014, around the time the cryptocurrency launched.
The surge in newly created addresses also means that the network has added 1100% more addresses in the past week alone. Such a milestone, coming in the early stages of a possible crypto bull market, has raised optimism that Dogecoin’s price may rise significantly if the trend continues.
The #Dogecoin network is witnessing a remarkable surge in growth, with new addresses increasing by a staggering 1,100% over the past week!
— Ali (@ali_charts) January 30, 2024
What is Behind The Surge and Will Price Follow?
The eye-catching jump in the number of new addresses is undoubtedly linked to the resurging interest in the crypto market in recent times. However, the growth may also be directly associated with the advent of the Ordinals technology on the Dogecoin network.
First pioneered on Bitcoin, the technology allows users to trade non-fungible tokens on the legacy Dogecoin network. Projects like Doge Labs have tapped the DRC-20 token standard to allow users to trade Dogecoin-based NFTs denominated in the DOGE cryptocurrency.
Only time will reveal whether the growing interest in Dogecoin-based NFTs, so-called Doginals, will outlive the initial hype stage. In the event of a positive outcome, a surge in demand for Dogecoin (DOGE), as users will require the cryptocurrency to trade the assets.
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Meanwhile, even if such a positive outcome fails to materialize, the latest trend is already attracting more users to the Dogecoin ecosystem and will likely continue to do so for as long as it lasts.
At the time of writing, Dogecoin trades at $0.08076, representing a mild 5% growth in the past week. Many analysts foresee a Dogecoin surge, including an ambitious run up to $5.