Decline in Dogecoin Millionaires
The rise of Dogecoin in 2021, fueled by support from billionaire Elon Musk, saw the meme coin’s price surge by over 10,000% to reach a high of $0.7. This surge created numerous new millionaires. However, as the bear market continues, the number of Dogecoin wallets containing enough coins to claim millionaire status has been rapidly decreasing, falling by more than 50%. This means that there are now only 546 Dogecoin wallets that hold coins worth $1 million or more, according to data from BitInfoCharts. This is a substantial decline from the figure that rose above 1,000 during the 2021 surge. The number of wallets holding more than $10 million in Dogecoin has also decreased to just 88, signaling a concerning trend.
Concentration of Wealth in Dogecoin
Despite the small number of millionaire wallets, they control a significant portion of the Dogecoin supply, with 65% of the total supply being held by these whale addresses. This leaves smaller investors, who make up a larger portion of the holder base, with just 35% of the circulating supply. Furthermore, only 78 investors control 21.81% of the total Dogecoin supply, holding a staggering 31.69 billion Dogecoin. This concentration of wealth raises concerns about the distribution of wealth within the Dogecoin community.
Strategies of DOGE Whales
Despite the declining number of millionaire Dogecoin addresses, large holders of Dogecoin are not abandoning the meme coin. Data from IntoTheBlock reveals that these large holders have been accumulating more Dogecoin in recent days, with a significant increase in inflows into their addresses. However, they may also be selling nearly as much as they are buying, as the outflow from their addresses has also increased. This selling trend among large investors could be contributing to Dogecoin’s price lagging behind other cryptocurrencies in the market, raising questions about the coin’s future performance.
It is clear that the distribution of wealth within the Dogecoin community is becoming increasingly concentrated, with a small number of large holders controlling a significant portion of the coin’s total supply. This trend could have implications for the future of Dogecoin and its ability to maintain its value and grow in the long term.
Featured image from Analytics Insight, chart from Tradingview.com
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