The price of Dogecoin yesterday, after rising sharply to $ 0.69, replaced Ripple in fourth place in the digital currencies market. Intra-chain data, however, show that a large number of Dodge coins are available to a small number of investors.
to the the report Coin Telegraph, the recent leap as pictured was not a mass movement. Intra-chain data show that a small number of people use the blockchain of this digital currency and most of the market fluctuations are caused by these people.
On Tuesday, just over $ 58 billion of Dogecoin was transferred to the Blockchain of this digital currency. Interestingly, this was 70% more than the amount of bitcoins transferred ($ 34 billion) and 260% more than the amount of transfers Ethereum ($ 16 billion) on the same day.
The data also show that despite the higher value of Dodge Coin transactions compared to Ethereum Bitcoin transactions, the number of transactions was only a fraction of the two major digital currency transactions on the market.
Bitintocharts data show that more than 1.4 million transactions were recorded in the Ethereum Blockchain on Tuesday. This amount was 300,000 transactions for Bitcoin. Dogecoin traded just 76,000 on Tuesday; This reflects the heterogeneous distribution of wealth in this network.
If we look at the average value of Dodge Coin transactions on Tuesday, we will see that their value is almost twice the value of Bitcoin transactions. In other words, the average value of Dodge Coin transactions is estimated at $ 800,000, which is $ 420,000 for Bitcoin. The data for Ethereum are the same, except that the average value of Dogecoin transactions is 8,000% higher than the value of Ethereum Transactions, while the number of Dogecoin transactions was only 5% of the value of Ethereum Transactions. .
Now let’s compare this data with Dogecoin’s wealth distribution; An address now holds 28% of the Dodge Coins in the cycle and 67% of the existing Dodge Coins has 12 accounts; This shows that Dogecoin is not the currency of the people as the general public thinks!
A new report from Galaxy Digital claims that Dogecoin cannot be considered an authentic digital currency project. The report, titled “Dodge Coin: The Most Honest Thing Quinn,” states that the number of Dogecoin GitHub repository subscribers is only 26 percent of the number of nodes in this digital currency; This means that few people are looking to improve the security and maintenance of the Dogecoin network.
But even though the Dogecoin Gateway page looks like Ghost Town, it still has the best performance among digital currencies on the market. Since the beginning of 2021, the price of Dogecoin has increased by 14,000 percent. At that time, the price of each Dodge unit was less than one cent!
According to many, Dogecoin owes its sharp rise in price to Elon Musk tweets this year. He repeatedly spoke of Dogecoin on Twitter, addressing 52 million followers, and in one of his recent tweets, he called himself “Dodge Fader.”
It should not be forgotten that the $ 0.69 price is the target that Reddit traders predicted for Dogecoin. Of course, they had initially set the price of Dogecoin at $ 0.420 on the 20th of April. Now, after two weeks, the price of Bitcoin has reached another goal. Reddit traders are currently pursuing their main goal of bringing the Dogecoin price to $ 1.
If you are looking for more evidence that markets do not always make sense, just look at GameStop stock flows. The company’s stock grew 9,000 percent in a short period of time.
Galaxy Digital researcher Alex Thorn writes in his report:
Dogecoin has always been a joke and it gets fun every day.
He went on to praise Dogecoin for not making vain claims. According to him, the Dogecoin price jump had nothing to do with the news about this digital currency or its network developments. He cited the inference of a reaction as the main reason for the jump, saying:
Dogecoin’s life lasts as long as this talk: People love good jokes.