On-chain data shows the Dogecoin whales have been shaving off their holdings over the past year, a sign that could be bearish for the memecoin.
Dogecoin Whales Have Notably Reduced Their Supply In The Last Year
According to data from the market intelligence platform IntoTheBlock, DOGE whales have lost supply share to other holder groups recently. The “whales” here refer to the Dogecoin addresses carrying at least 1% of the entire circulating supply of the memecoin in their balance.
These humongous holders are considered the most influential on the network due to the massive scale of tokens they control. Their collective behavior can be worth keeping an eye on, as even if it may not directly impact the price, it can tell us about the sentiment among this cohort.
Now, here is a chart that shows how the percentage of the total supply held by the 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 displayed in the above graph, the Dogecoin whales have seen their share of the Dogecoin supply in circulation go down during this window. More specifically, these investors owned around 45.3% of the asset’s supply a year ago, but today they own about 41.3%.
The whales have sold around 9% of their net holdings since then. “In contrast, retail and mid-sized investors now hold a larger share of the total supply,” explains the analytics firm.
IntoTheBlock defines “investors” as the addresses carrying between 0.1% and 1% of the supply, while retail refers to the entities holding less than 0.1%. Currently, the former controls around 21% of the DOGE supply and the latter 37%.
Naturally, the whales’ reduced holdings over this period suggest that big money has been losing interest in Dogecoin, which can be bearish for its price.
On the other hand, the redistribution of the supply to smaller holders could be positive for the health of the DOGE ecosystem, as it means that the asset is less centralized over a few large entities.
In some other news, IntoTheBlock has shared in another X post an update on how the activity on the Dogecoin blockchain has been looking recently and how it compares to other meme-based coins in the cryptocurrency sector.
The trend in the number of traders and number of transactions for memecoins over the past year | Source: IntoTheBlock on X
The chart on the left shows the trend in the number of traders for these assets, while the one on the right displays the number of transactions. In both of these metrics, Dogecoin is currently the number one memecoin.
Interestingly, the number two such asset isn’t Shiba Inu (SHIB) or PEPE (PEPE). Rather, it’s Degen (DEGEN). “This achievement is remarkable considering DEGEN’s market cap is only 0.79% of Dogecoin’s,” notes the analytics firm.
DOGE Price
Dogecoin has seen a plunge of more than 11% in 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 from Dall-E, IntoTheBlock.com, chart from TradingView.com
