Despite a year-long bear market in the cryptocurrency field that saw the value of most digital assets plummet, the majority of Dogecoin ($DOGE) holders remain profitable.
According to data from on-chain data business IntoTheBlock, 57% of Dogecoin addresses are in-the-money, indicating they purchased their DOGE tokens below current market values, while 41% are out-of-the-money, meaning they purchased their DOGE tokens above current market prices.
The meme-inspired cryptocurrency has lost more than half of its value in the last year, as part of a larger cryptocurrency bear market. It has been recovering in recent months, with the cryptocurrency increasing by more over 10% in the last six months.
According to CryptoGlobe, the largest whale on the cryptocurrency’s network shifted over $280 million in cryptocurrency to a new address late last year, which has since become the 5th largest on the network.
Dogecoin’s largest address, which formerly held 28% of the meme-inspired cryptocurrency’s circulating supply, has been identified as belonging to the commission-free trading platform Robinhood by explorers (NASDAQ: HOOD). If the whale is actually Robinhood, the address is merely their cold storage wallet, which holds user dollars.
Others, on the other hand, believe the wallets belong to Tesla, Twitter, and SpaceX CEO Elon Musk. Musk has stated that DOGE is his favourite cryptocurrency and has promoted it on social media as a payment option for Tesla items.
Lookonchain, an on-chain analysis service, has revealed evidence indicating Musk is behind the whale address, since the whale contributed big sums of tokens at periods that corresponded with Elon Musk’s tweets regarding cryptocurrencies.
It’s worth mentioning that these inflows could also be tied to $DOGE holders shifting their assets to Robinhood to trade the cryptocurrency based on Musk’s statements, as he has been known to influence the price of the cryptocurrency.
According to reports, during the cryptocurrency’s spectacular 10,000% price increase, search interest for the meme-inspired cryptocurrency skyrocketed, rising from an average of 135,000 monthly searches in April 2020 to 16.5 million in April 2021.