Over the last year, Dogecoin has grown from a joke to one of the top ten cryptocurrencies on the market. It is no longer a meme-coin for many of its supporters. Instead, they see it as an asset worth investing in. Is that correct?
Whatever the case may be, it is impossible to deny that the altcoin has been performing well recently.
With the exception of a recent anomaly, things are going well. In fact, the same thing could have a big impact on the market.
DOGE sits like a gentleman.
Where do you want to go? There are three dormant addresses within three dormant addresses. And not in small doses either.
Over 7.8 billion DOGE have remained unmoved at these top three dormant addresses for more than three years. This DOGE is worth well over $2.23 billion and represents approximately 6% of Dogecoin’s total supply. Not only that, but the total supply held by the top ten dormant addresses is $3.29 billion.
DOGE experienced a critical rally in April, followed by a crash in May. Last month, it saw another strong rally, pushing the altcoin up by 85 percent on the price charts. Despite this, these HODLers have not moved a single coin. These are the people who have been keeping the HODLer numbers up.
The average time they have held DOGE is 3.2 years, which corresponds to the dormancy of these addresses. The issue is that if they decide to sell their holdings, the price of DOGE will fall as well.
However, since August 2020, the number of HODLers has decreased by 200k addresses, with mid-term holders or “cruisers” taking their place.
Is Dogecoin still a good investment?
Over the last year, the number of cruisers has increased by 1.5 million addresses. Their average holding period is about three months. And it appears that these cruisers are currently looking to sell their DOGE.
Dogecoin’s price dropped by 12% two days ago, according to the price charts. At the time of publication, market order depth appeared to indicate that selling had surpassed buying. Sell orders outnumbered buy orders by 70 million DOGE.
However, because of the high Return on Investment (ROI) noted by DOGE, it may attract more investors. Dogecoin’s ROI has surpassed that of Bitcoin and Ethereum.
Furthermore, a strong value on the MVRV ratio (2.25), combined with news of Watford FC wearing Dogecoin’s logo, is likely to pique the interest of investors.