On-chain data reveals that Dogecoin whales participated in a significant volume of net purchases over the past three days.
Dogecoin whales have seen their holdings increase recently
As analyst Ali Martinez explains in a job on X, DOGE whales just showed a big accumulation. The on-chain metric that interests us here is the “Supply distribution” from analytics firm Santiment, which tracks the total amount of Dogecoin supply that different wallet groups currently hold.
Addresses or investors are divided into these cohorts based on the number of coins they currently have in their balance. The 1 to 10 coins group, for example, includes all addresses with between 1 and 10 DOGE. If the supply distribution is applied to this group, it will measure the total amount of supply currently held by investors meeting this condition as a whole.
In the context of the current debate, the “whales» are interesting. These holders can be defined as those holding between 100 million and 1 billion DOGE. At the current Dogecoin exchange rate, the two ends of this range convert to approximately $16.1 million and $161 million, respectively.
Obviously, whales are extremely large entities and it is because of this scale that they are considered influential beings on the network. As such, the behavior of these investors may be worth tracking, and one way to do this is to track their supply trend.
The chart below shows how Supply Distribution has been looking for Dogecoin whales recently:
The value of the metric appears to have spiked over the last few days | Source: @ali_charts on X
As the chart shows, Dogecoin whales have recently seen an increase in their holdings. Specifically, these huge holders purchased 700 million DOGE (currently worth almost $113 million) over the last three days or so.
This purchase comes as the price of the cryptocurrency has seen a slight decline. It would appear that these investors view current prices as potentially profitable entry points into the wedge. Naturally, large silver holders showing such interest in the asset may be a bullish sign.
Following the buying frenzy, the total supply of this group amounted to approximately 30.91 billion DOGE. This means that whales now control approximately 21.4% of the entire circulating supply of memecoin.
While DOGE has seen positive developments in terms of whale purchases, its competitor Shiba Inu (SHIB) wasn’t so lucky. As Ali pointed out in another jobcentralized exchanges received approximately $103 million from SHIB over the past two weeks.
Looks like the value of the metric has been rising recently | Source: @ali_charts on X
One of the main reasons why investors deposit on these platforms is for sales purposes. These large deposits could therefore suggest that Shiba Inu whales have sold or are preparing to do so.
DOGE Price
At the time of writing, Dogecoin is floating around $0.16, down 1.5% over the past seven days.
The price of the coin has observed a small drop in recent days | Source: DOGEUSD on TradingView
Featured image from Dall-E, Glassnode.com, Santiment.net, chart from TradingView.com
