According to Chainalysis, dogecoin is currently being adopted by new investors at a rate not seen since the late-2017 bull market. The firm also stated that “the majority of the supply is held by a small number of wealthy entities.” Specifically, 535 entities with more than 10 million DOGE each hold 82 percent of the DOGE supply.
Analysis of Dogecoin by Chainalysis
Last week, the blockchain data platform Chainalysis released a Market Intel report on dogecoin. Philip Gradwell, the firm’s chief economist, explained:
According to an exclusive on-chain analysis of dogecoin, it is currently being adopted by new investors at a rate not seen since the late-2017 bull market, with new investors increasing their supply share from 9% in July 2020 to 25% in August 2021.
The chief economist at Chainalysis also stated that dogecoin ownership is highly concentrated, stating that “a small number of wealthy entities own the majority of the supply.”
He stated that there are currently 4 million DOGE holders on the blockchain. “106 billion DOGE, or 82 percent of supply, is held by 535 entities that each hold more than 10 million DOGE, or 0.01 percent of entities,” he said, adding that “this is likely a mixture of businesses, such as exchanges that store DOGE on behalf of millions of traders, and a few, now-wealthy, early investors.”
He went on to say that, of the 4 million DOGE holders, 2.1 million have less than 100 DOGE each, with half having held the meme cryptocurrency for more than two years. “These low-balance entities are not necessarily individuals, but are likely to be scattered wallets belonging to a smaller number of individuals,” the economist explained.
According to the analysis, “37 billion of the 106 billion DOGE is held by just 31 investors who have held their DOGE for 6 months to 2 years – that is more than 1 billion DOGE on average.” Some of these may be commercial entities, such as exchanges.”
The economist explained that “DOGE is an asset like any other, with changes in ownership and liquidity in response to changes in demand and price,” and that “DOGE is an asset like any other, with changes in ownership and liquidity in response to changes in demand and price.”
The rise in the price of Dogecoin demonstrates that cryptocurrencies are branding experiments for financial assets, plugged directly into the craziness and creativity of the internet. While this may appear to contradict traditional financial brand values, it is possible that traditional financial brand values are out of step with consumers.