Most Dogecoin holders ($DOGE) are still in profit, Blockchain data shows

by Arthur · January 13, 2023

Most holders of the meme-inspired cryptocurrency Dogecoin ($DOGE) remain in profit, despite a year-long bear market in the cryptocurrency space that saw the value of most digital assets plummet.

According to data from on-chain data firm IntoTheBlock, 57% of addresses holding Dogecoin are in the money, meaning they bought their DOGE tokens below current market prices, while 41% of holders are out of the money, or bought their DOGE above current market prices.

Also read: Does Dogecoin have a cap or supply limit?

The meme-inspired cryptocurrency lost over 50% of its value in the past 12 months amid a broader cryptocurrency bear market. It has recovered in recent months, as the cryptocurrency has risen over 10% over the past 6 months.

As CryptoGlobe reported, late last year the largest whale on the cryptocurrency’s network moved over $280 million in the cryptocurrency to a new address, which has since become the 5th largest on the network.

Dogecoin’s largest address, known at one point to hold 28% of the meme-inspired cryptocurrency’s circulating supply, has been flagged on explorers as belonging to commission-free trading platform Robinhood (NASDAQ: HOOD ). If the whale is indeed Robinhood, then the address is simply their cold storage wallet, where user funds are kept.

However, others speculate that the wallets belong to Tesla, Twitter and SpaceX CEO Elon Musk. Musk has said DOGE is his favorite cryptocurrency and has promoted it on social media while adding it as a payment option for Tesla merchandise.

On-chain analytics service Lookonchain has shared data that suggests Musk is behind the whale address, as the whale added large amounts of tokens at times that coincided with Elon Musk’s tweets about the cryptocurrency.

It is worth noting that these insinuations could also be related to $DOGE holders moving their money to Robinhood to trade the cryptocurrency based on Musk’s words, as he has been known to move the cryptocurrency’s price.

As reported, search interest in the meme-inspired cryptocurrency exploded during the cryptocurrency’s massive 10,000% price rise, from an average of 135,000 monthly searches in April 2020 to 16.5 million in April 2021.

Read also: Dogecoin (DOGE) Price history: What price did DOGE start at?

Interest in DOGE has since waned amid a major downturn in the cryptocurrency market. Nonetheless, the cryptocurrency’s market cap has recently surpassed the market cap of Nasdaq-listed cryptocurrency exchange Coinbase.