Dogecoin Skyrockets: 5 Million Addresses and Counting on Profit Streak

Jonathan Stoker Nov 28, 2023, 21:50pm 170 views

Dogecoin Skyrockets: 5 Million Addresses and Counting on Profit Streak

Dogecoin Adoption Surges Despite Ownership Concentration Concerns

With its tongue-in-cheek image, DogecoinDogecoin$0.091 -0.42% (DOGE) continues to gain traction, as highlighted by the fact that the number of crypto addresses holding DOGE has surpassed the 5 million mark for the first time. This growth, seen two years after the onslaught of the COVID-19 pandemic, indicates a sustained interest in more playful digital assets. Despite an impressive rise in active addresses and confirmed transactions on the DOGE network, worries about the concentration of ownership within the DOGE ecosystem still persist.

Elevated Metrics and Ongoing Concerns

IntoTheBlock, an on-chain analytics firm, has provided data showing a significant surge in DOGE adoption, with the tally of active addresses doubling to hit a high of 168,000 - the highest since March 2022. Transactions on the Dogecoin blockchain have also skyrocketed, seeing an astonishing 1,000% rise in the last 10 days, reaching heights unseen since June.

However, the concentration of ownership continues to cast a shadow on DOGE's recovery. BitInfoCharts points out that less than 5,000 addresses control over 80% of DOGE's supply, which underscores the risks of a small group holding considerable sway over the cryptocurrency's price.

DOGE Market Capitalization Increase

Despite these concerns, DOGE's market capitalization has swelled by 14%, nearing $11 billion this month. This upward trend in market value is often associated with increased adoption and usage of a cryptocurrency. Notably, Dogecoin's resilience stands out, with more than half of all DOGE investors currently in profitable positions, as indicated by IntoTheBlock.

Profitable Dogecoin Investors

Current data reveals that 57% of all DOGE wallet addresses are "In The Money" at present, meaning that these investors bought DOGE at a price lower than the current $0.078342 per coin. It is noteworthy that 73% of all Dogecoin investors have held their positions for more than a year, demonstrating a considerable number of long-term holders. Conversely, 27% of investors have held for under a year, with 4% having positions for less than a month.

Future Potential and Challenges for DOGE

The recent milestones in Dogecoin's adoption, evidenced by the increase in addresses and transactions, imply a sustained interest in the cryptocurrency. However, the issue of ownership concentration and the need for a corresponding surge in trading volume highlight potential hurdles to DOGE's continued growth.

The role of Dogecoin as a store of value for a significant portion of its investor base is becoming increasingly evident, underscoring the complex interaction between market metrics and investor behaviour in the cryptocurrency sphere.

Edited by Jonathan Stoker

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