Crypto Addresses Holding Dogecoin Hits 5 Million Milestone

• Fewer than 5,000 addresses own more than 80% of DOGE’s supply.
• Over 50% of Dogecoin investors are now sitting in a profitable position.

Following data compiled by on-chain analytics company IntoTheBlock, the number of crypto addresses containing DOGE has now surpassed 5 million, marking a significant milestone.

With a 1,000% increase in the last 10 days, the number of completed transactions on the network reached a new high, while the quantity of active addresses on the network nearly doubled to 168,000, achieving a record high since March 2022.

Optimism Among Investors

Despite the prominence of these numbers, the problem of DOGE’s concentrated ownership persists. Fewer than 5,000 addresses own more than 80% of DOGE’s supply, suggesting that the price of the cryptocurrency is controlled by a small group of traders.

A number of similar tokens, such as Shiba Inu, were created in response to Dogecoin’s meteoric rise to fame in early 2021, when Elon Musk posted parodies based on the token. An interesting fact emerged on November 25th, according to statistics from IntoTheBlock: over 50% of Dogecoin investors are now sitting in a profitable position.

In essence, this demonstrates that these investors have faith in Dogecoin’s ability to retain value. It may also suggest that these holders are considering selling DOGE soon in order to cash in on this windfall. Notably, 57% of all wallet addresses that own DOGE are profitable. This indicates that the buyers of DOGE paid less than the current price of $0.07777 per coin as per data from CoinMarketCap.

Moreover, a large number of “whale” investors have shown significant interest in Dogecoin recently, as seen by the 121 new wallets that have appeared, each holding at least 1 million DOGE. Furthermore, long-dormant high-value wallets are once again in motion.

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