Dogecoin hits eight million holders in August and ramps up for a new supercycle

Dogecoin (DOGE) holds a unique position in crypto as it sits at the intersection of several highly sought-after categories. It is an altcoin made in the US and also a meme coin that once turned many investors into millionaires.

At the same time, DOGE price maintains a strong correlation with Ethereum. Together with on-chain data, these factors have led many investors to expect DOGE to kick off a new parabolic bull cycle in 2025.

Dogecoin’s growth, correlation, and MVRV all point toward bull case

According to Santiment data, the number of Dogecoin (DOGE) holders has surpassed an all-time high (ATH) of 8 million in August. This figure marks an increase of more than 1 million since the start of 2025.

What stands out is that this milestone came despite DOGE’s volatile price swings. This signals strong investor confidence, showing that the community’s belief in the meme coin continues to grow.

Total Amount of DOGE Holders. Source: Santiment

Moreover, Dogecoin's pace of adoption in 2025 is faster than last year's. In 2024, it took the whole year to add 1 million holders, whereas in 2025, the same milestone took less than eight months.

Another factor is DOGE’s Market Value to Realized Value (MVRV) ratio. The MVRV ratio compares the total value of all coins at today’s market price to what investors actually paid for them, revealing whether holders are overall in profit or at a loss.

The metric currently shows low values compared to historical levels, suggesting the coin might be undervalued.

DOGE’s Market Value to Realized Value (MVRV) Ratio. Source: Glassnode.

Glassnode data shows DOGE’s MVRV stands at 1.5, while the historical peak exceeded 4.5. This implies DOGE still has significant room to grow.

“When MVRV starts rising again… you know what comes next. Why not stake your DOGE before the chart goes vertical again?” an X user predicted.

Strong Correlation With Ethereum

DOGE’s strong correlation with Ethereum (ETH) is another key factor. When the two price charts are compared side by side over the past three years, the similarity is clear.

Comparison of Price Movements of ETH and DOGE. Source: CoinmarketCap

It is advantageous to maintain a close correlation with the second-largest crypto asset by market cap. Currently, ETH accumulation is underway. This trend could become a catalyst that pushes DOGE higher.

According to DefiLlama, the correlation between the two altcoins reached 0.87 in just the past seven days. Swissblock added that ETH leading DOGE is a positive sign for a more sustainable rally.

“It’s important to understand DOGE in the context of ETH and how that leads to an overall risk-taking environment. Historically, when DOGE leads, everything is explosive and unsustainable. When ETH leads and DOGE follows, it tends to be more sustainable and lasting,” Swissblock reported.

DOGE ETF could be a major catalyst

Finally, another reason for investor excitement is the expectation of a DOGE Exchange-Traded Fund (ETF).

If approved, a DOGE ETF could become a powerful catalyst. It might push the coin into another parabolic rally similar to its past two cycles.

DOGE Price Cycles. Source: Galaxy

“DOGE cycles are real. We are in the accumulation phase. The next phase is everybody talking about Dogecoin again,” Analyst Galaxy predicted.

Although the SEC has postponed decisions on several spot ETF applications until October 2025, betting platform Polymarket currently prices the odds of a DOGE ETF approval in 2025 at 75%.

The surge in DOGE holders, its correlation with ETH, a low MVRV ratio, and ETF expectations all paint a bullish outlook. However, investors must also consider the downside. Since 2020, DOGE has dropped between 60% and 90% during bear market downtrends.