Chainalysis has now integrated the meme coin into its crypto analysis reports. The on chain data tells us how the total supply of coins is distributed among investors.
While new Dogecoin investors held just 9 percent of the total supply in July 2020, a year later it was already 25 percent. This is probably due to the increased popularity of DOGE after, among others, Tesla CEO Elon Musk had frequently presented the coin on Twitter. Instead, the number of long-term investors (holding time over two years) has fallen from 30 percent to 20 percent.
Dogecoin: popularity through
In 2021, the number of active Dogecoin users increased significantly. On average there were 32,000 active users per day, with around 4 million Dogecoin holders. The Chainalysis report states:
“Doge ownership is very concentrated, however, with 106 billion Doge, 82% of supply held by 535 units, each holding more than 10 million Doge, or 0.01% of the units.”
2.1 percent of the keepers own less than 100 DOGE. Chainalysis also shows that the majority of DOGE coins are stored in wallets of large investors. It is not clear whether these are individuals, companies or stock exchanges.
Fun Fact: A Goldman Sachs manager quit after his Doge investment made him millions.
Dogecoin Prize: The Madness of the Internet
DOGE currently ranks 7th in terms of market capitalization. The Dogecoin price is hovering around the $ 0.28 mark.
In the Chainalysis report we read:
“The rise in the price of Dogecoin shows that cryptocurrencies are experiments in branding financial assets that are directly linked to the craziness and creativity of the internet. While this may run counter to traditional financial brand values, traditional financial brand values may not align with consumers. “
The report also states that the Dogecoin price is determined by supply and demand. However, demand is also determined by activities on social media.
Dogecoin Ponzi Scam
After influencers like Marc Cuban or Elon Musk campaigned for the popularity of Dogecoin, the Turkish authorities have now found a Ponzi system around DOGE. Here a prime suspect lured unsuspecting investors with an allegedly lucrative Dogecoin mining system. According to tv100.com, the damage will amount to around 120 million US dollars.
It remains to be seen whether this incident will damage the popularity of the meme coin in the long term. However, the Ponzi fraud makes it clear how popular the coin is and what amount of money could flow into the DOGE-Versum.
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