Dogecoin has become one of the largest cryptocurrencies, although it was created as a “joke” coin. It is also not seen as just a memecoin by investors. There are those who accept DOGE as a store of value. For example, his biggest supporters, Elon Musk and Mark Cuban, explain that they are holding DOGE for their children. However, is it really so? The answer to this may be positive, apart from a few recent anomalies. For more detailed answers, we take a look at analyst Aaryamann Shrivastava’s on-chain analysis of DOGE investors…
How much of the Dogecoin supply do the whales have?
The distribution of Dogecoin among wallets is not even and in small amounts. Among the 3 addresses below, more than 7.8 billion DOGEs have been dormant for over three years. DOGE was valued at over $2.23 billion, with these 3 addresses holding 6% of the total supply. Meanwhile, the total amount of DOGE held by the top 10 addresses is equivalent to $3.29.
Now, DOGE had a serious rally in April and hit the wall with the entire market in May. Another rally last week has considerably healed the Bitcoin and altcoin projects. Some altcoins are up 85%. Long-term Dogecoin (HODLer) investors did not sell during this period. The average time they spend at DOGE seems to be up to 3.2 years, which is equivalent to the dormancy of these addresses. The problem may arise when these DOGE whales decide to dispose of them quickly. If it does, the DOGE price will suffer a significant drop. However, since August 2020, HODLer numbers have decreased by 200,000 addresses and have been replaced by intermediate owners or “cruisers”.
Can Dogecoin still be invested?
The numbers of the investor group called “Cruiser” increased by 1.5 million addresses last year. Average DOGE retention times go up to about 3 months. And right now, these cruisers appear to be moving to sell their DOGE. 2 days ago, Dogecoin dropped 12% on price charts. At the time of writing, market order depth seemed to indicate that selling takes precedence over buying. Sell orders were higher than buy orders, up 70 million DOGE.
However, due to DOGE’s high Return on Investment (ROI) recorded since the beginning of the year, it may attract more investors ticks instead. It is worth noting that Dogecoin’s ROI is now higher than Bitcoin and Ethereum (ETH). Moreover, Cryptocoin. com With the news that Watford FC carries Dogecoin’s logo, a strong value in the MVRV ratio (2.25) is likely to attract the attention of investors.