Dogecoin is a dog-themed cryptocurrency
Dogecoin (CRYPTO: DOGE) is a dog-themed cryptocurrency created by Billy Markus and Jackson Palmer. It was released on December 6, 2013, as a joke has now become one of the popular open-source peer-to-peer digital currencies, favoured by Shiba Inus worldwide.
It’s inevitable pic.twitter.com/eBKnQm6QyF
— Elon Musk (@elonmusk) July 18, 2020
In 2021, Dogecoin has become the fifth most traded cryptocurrency, thanks to people like Elon Musk. As per a report by Chainalysis, Dogecoin has the fourth-largest 30-day trading volume of all cryptocurrencies, with over $199 billion worth of transfers, as of August 9, 2021.
Dogecoin ownership is very concentrated
“Currently there are 4 million on-chain holders of Doge. But most of the supply is held by a small number of wealthy entities,” stated Philip Gradwell, Chief Economist of Chainalysis.
The report by Chainalysis shows that 106 billion DOGE, which makes up 82 percent of Dogecoin supply, is held on-chain by only 535 entities (0.01 percent of the entities) that hold more than 10 million DOGEs each. 37 billion of the 106 billion DOGEs are held by only 31 investors.
While only 535 entities own 82 percent of the supply, 2.1 million of the 4 million entities hold less than 100 DOGE each, with half of them holding the cryptocurrency for more than 2 years.
Dogecoin is gaining popularity among new investors
“New investors returned again in July 2020 on the back of the TikTok trend, increasing their holdings from 9% to 17% of supply by October 2020. New investors acquired even more from January 2021, as Elon Musk and Reddit raised the profile and the price of Doge,” read the report.
Do you want Tesla to accept Doge?
— Elon Musk (@elonmusk) May 11, 2021
Crypto investors, who acquired DOGE in the last six months, now hold 25 percent of the supply. On the other hand, the percentage of investors who held the cryptocurrency for more than two years has fallen from 30 percent in July 2020 to 20 percent in August 2021.
At the time of writing this article, DOGE was trading at ₹ 21.58.