$DOGE: Crypto Analytics Firm Explains Why Dogecoin Is ‘Impressive’

by Arthur · March 6, 2023

Blockchain analytics startup IntoTheBlock (ITB) recently took a closer look at the price performance of the popular meme-based altcoin Dogecoin ($DOGE) over the past few years.

Dogecoin ($DOGE) was released on December 6, 2013, as a “fun and friendly internet currency.” It was created by Billy Markus and Jackson Palmer. Dogecoin is “a decentralized, peer-to-peer digital currency” whose mascot is “Doge”, a Shiba Inu (a Japanese breed of dog).

Here is how Binance Academy describes Dogecoin:

“Dogecoin (DOGE) is an open source, peer-to-peer cryptocurrency derived from a fork of the Litecoin codebase. As the name suggests, it is largely based on the Doge meme that took the Internet by storm in 2013. The original image depicts a Shiba Inu dog whose inner monologue appears in comic strips without writing…

“Despite being an asset whose existence revolves around an Internet meme, Dogecoin has developed a dedicated community of users. Many years later, Dogecoin managed to remain among the top cryptocurrencies by market capitalization.“

Since its launch, Dogecoin’s popularity has increased significantly, especially in the last 3-4 years, mostly thanks to the support of billionaires Elon Musk and Mark Cuban (the majority owner of the professional basketball team Dallas Mavericks, as well as one of the “sharks”” on the very popular reality show “Shark Tank”, to the point that it is currently the ninth most valuable cryptocurrency, with a market capitalization of over $9.83 billion (as of 07:50 UTC March 6, 2023). In fact, in 2019 Musk said that $DOGE could be his favorite cryptocurrency.

Dogecoin might be my favorite cryptocurrency. That’s pretty cool.

— Elon Musk (@elonmusk) 2 April 2019

Anyway, last week ITB commented on what one of their on-chain signals – the “In/Out of the Money” indicator – says about $DOGE. This calculation “shows what percentage of addresses holding this crypto-asset are making money (in-the-money), breaking even (in-the-money), and losing money (out-of-the-money) given the current market price.”

Here is the ITB explaining in more detail how this calculation works:

“For all addresses with token balances, ITB identifies the average cost for which these tokens were purchased and compares it to the current price. If Current Price > Average Cost, the address is ‘in the money’. If the current price “

ITB told its 44.5k Twitter followers that the percentage of $DOGE holders in profit “rarely” drops below 40% and that the last time this happened was in 2015, which they found “impressive” since “other altcoins often suffer 90%+ losses in bear markets.”

Currently 56% of $DOGE holders are in the money:

According to data from TradingView, $DOGE is currently trading around $0.0739, down 2.05% in the last 24-hour period, but up 5.72% in the year-to-date period.