On-chain data shows that Dogecoin whales have reduced their holdings over the past year, a sign that could be bearish for the memecoin.
Dogecoin whales have significantly reduced their supply over the past year
According to market intelligence platform data In the block, DOGE whales have recently lost their supply share to other holder groups. THE “whales“These are Dogecoin addresses that contain at least 1% of the total circulating supply of memecoin in their balance.
These huge holders are considered the most influential in the network due to the massive scale of tokens they control. Their collective behavior is worth monitoring, because even if it doesn’t have a direct impact on price, it can tell us something about the sentiment of this cohort.
Now here is a chart that shows how the percentage of total supply held by Dogecoin whales has changed over the past year:
Looks like the value of the metric has been going down for these large investors | Source: IntoTheBlock on X
As the chart above shows, Dogecoin whales saw their share of the circulating Dogecoin supply decline during this window. Specifically, these investors owned about 45.3% of the asset supply a year ago, but today they own about 41.3%.
Since then, the whales have sold about 9% of their net assets. “In contrast, retail and mid-sized investors now hold a larger share of total supply,” explains the analysis firm.
IntoTheBlock defines “investors” as addresses holding between 0.1% and 1% of the supply, while retail refers to entities holding less than 0.1%. Currently, the former controls around 21% of the DOGE supply and the latter 37%.
Naturally, the reduction in whale holdings during this period suggests that big money has lost interest in Dogecoin, which may be bearish for its price.
On the other hand, redistribution of supply towards smaller holders could be positive for the health of the DOGE ecosystem, as it means the asset is less centralized among a few large entities.
In other news, IntoTheBlock shared in another job an update on how activity on the Dogecoin blockchain was recently studied and how it compares to other meme-based coins in the cryptocurrency industry.
The trend in the number of traders and number of transactions for memecoins over the past year | Source: IntoTheBlock on X
The graph on the left shows the evolution of the number of traders for these assets, while the one on the right displays the number of transactions. By both measures, Dogecoin is currently the number one memecoin.
Interestingly, the second such asset is not Shiba Inu (SHIB) or PEPE (PEPE). It’s more like Degen (DEGEN). “This achievement is remarkable given that DEGEN’s market capitalization is only 0.79% of that of Dogecoin,” notes the analytics firm.
DOGE Price
Dogecoin saw a drop of over 11% over the past week, taking its price to $0.122.
The price of the coin appears to have gone through a drawdown in recent days | Source: DOGEUSD on TradingView
Featured image of Dall-E, IntoTheBlock.com, chart by TradingView.com
