The research points that around 12 Doge addresses account for approximately 68% of the total circulating supply.
After pumping more than 120X since the beginning of the year, on-chain data now points towards Doge whales are behind the spectacular rally that has shadowed the rest of the crypto assets.
According to a fundamental, technical analyst, and on-chain researcher Coiner-Yodax, one dogecoin address controls over 28% of the circulating supply of Dogecoin. Additionally, Yodax noted that the address began accumulating doge back in February 2019, two months before ‘Doge father’ Elon Musk publicly endorsed it.
Doge Whales and Their Impact on Dogecoin
Further analysis by Cointelegraph shows that the value of Doge coins sent across the Dogecoin blockchain surpassed $58 billion on Tuesday. Notably, the figure was way higher than the top two digital assets by market capitalization recorded on the same day. Whereby Bitcoin recorded $34 billion while Ethereum recorded $16 billion.
That was not all, Cointelegraph noted that Doge recorded the high value sent through a fraction of transactions in comparison to both Bitcoin and Ethereum. Notably, Ethereum recorded over 1.4 million transactions on Tuesday, Bitcoin on the other hand recorded 300,000 transactions on the same day. Amazingly, Dogecoin recorded only 76,000 transactions on Tuesday and managed to surpass the top two assets in value transacted.
From the data presented, Doge whales transacted approximately $800,000 per transaction on Tuesday, in comparison to $420,000 on Bitcoin. An indication of the wealth gap presented by Dogecoin despite being pumped through social media platforms including Twitter.
Further research points that around 12 Doge addresses account for approximately 68% of the total circulating supply. Hereby leaving only 4% of the circulating supply to the public retail traders.
Dogecoin has a circulating supply of 129,475,242,412 units of Doge with an unlimited supply. In approximation, 5.17 billion Doge coins are held and exchanged by retail traders while the rest over 124 billion are controlled by Doge whales. This leaves huge price manipulation from the Doge whales that are likely to dump their holdings to the retail public traders, and thus cause a flash crash.
According to market data provided by CoinGecko, Dogecoin was trading around $0.600020 at the time of reporting, after dropping approximately 11.7% in the past 24 hours. Notably, the asset is ranked in the fourth position after dethroning XRP, all without any fundamental aspects.
Dogecoin as a meme joke has mostly been the reason for the pump, with the coin market capitalization almost $78 billion at the time of reporting.
A recent report by Galaxy Digital pointed out a glaring omission of system development since 2017. The report also noted that the number of fully synchronized nodes is 26% of the total node count, suggesting a lack of proper security measures.