Dogecoin Now at 5M Addresses, Concentration Issues Persist

• Dogecoin (DOGE) Adoption Continues to Soar
• Dogecoin Investors Multiply
• Ownership Concentration in DOGE Remains a Challenge
• Dogecoin: The Comedy Coin That Caught the World's Attention

Dogecoin (DOGE) Adoption Continues to Soar

The popularity of the humor-inspired cryptocurrency, Dogecoin$0.091 -0.42% (DOGE), continues to rise, years after the start of the coronavirus outbreak. The global health crisis is believed to have prompted individuals to invest large sums in this light-hearted digital asset to alleviate lockdown monotony.

Dogecoin Investors Multiply

For the first time, the number of cryptocurrency addresses holding DOGE has exceeded 5 million. This data has been collected and verified by on-chain analytics firm, IntoTheBlock. Furthermore, the number of actively used addresses on the network has more than doubled, reaching its highest level since March 2022, totaling 168,000. The number of confirmed transactions on the Dogecoin blockchain has also risen significantly, reaching its highest level since June with a tenfold increase in the past ten days.

Ownership Concentration in DOGE Remains a Challenge

Despite these impressive metrics, the ownership concentration in DOGE remains problematic. Data from BitInfoCharts reveal that less than 5,000 addresses control over 80% of DOGE's supply. This suggests that a small group of traders has significant control over the cryptocurrency's pricing. Nevertheless, DOGE's market capitalization has seen a 14% increase this month, nearing $11 billion. The growing adoption and more widespread use of cryptocurrency often leads to an increase in market value.

Dogecoin: The Comedy Coin That Caught the World's Attention

Dogecoin first shot to prominence in early 2021 when Elon Musk shared a series of memes based on the coin. This sparked a flurry of other dog-themed tokens, including Shiba Inu$0.000010 -2.05%, to be created. During this period, joke cryptocurrencies experienced a surge in popularity. This trend was driven by the coronavirus lockdown, government stimulus checks, and unprecedented monetary easing by central banks, all of which encouraged financial market risk-taking.

Edited by Jonathan Stoker