Dogecoin whale activity slows down as billions of dollars depart blockchain
Dogecoin is the fun, fast and new internet currency, it is a peer-to-peer crypto currency. It uses a decentralized blockchain for transaction processing, which means that the currency is not regulated by any banks or financial institutions.
As you may have heard, Dogecoin was the first cryptocurrency to hit $1 billion market cap, and it has been in the news lately for a few reasons. First, it hit the $1 billion market cap milestone on December 21st, and second, the Bitcoin blockchain explorer Coin Dance recently announced that Dogecoin’s daily volume of transactions is now at more than $2 billion. On the surface, this may seem like a good thing, but it’s actually playing havoc with the price.
The Dogecoin community has mostly been in a celebratory mood as the currency has surged in price. The dogecoin community is known for its generosity and its members have pledged billions of dollars to charitable organizations. But with the market at a new all-time high, some of these donations may have to be put on the back burner, until the dogecoin whales decide to reinvest their profits into the market.. Read more about dogecoin 100 dollars and let us know what you think.
After a surge in activity where Dogecoin (DOGE) briefly processed more daily dollar transactions than Bitcoin (BTC) and Ether (ETH) combined, the surge in activity on the Doge blockchain appears to be waning. Dogecoin’s 2021 price hike was accompanied by an equally unusual increase in the value of transactions made on its blockchain. The 5th. In May, the dollar value of Doge transferred from one wallet to another peaked at $82 billion, surpassing Bitcoin’s $35 billion and Ethereum’s $12 billion. The superiority of the world’s two most prominent blockchains is all the more surprising given that Dogecoin only reached $10 million per day in December 2020. In 2021, docecoin received attention from Tesla CEO Elon Musk and concentrated efforts from social media retailers to push docecoin up to levels similar to retailer GameStop’s shares. And while overall dogecoin activity remains well above December lows, a significant reversal occurred in May, suggesting that the dogecoin whales may have grown tired. On the 26th. In May, daily trading volume in dogecoin reached just under $5 billion, down 93% from the record $82 billion turnover earlier this month. Meanwhile, the average trading value on Doge fell sharply from $1.16 million on May 23 to less than $240,000 three days later on May 26, a drop of nearly 80%. The excess over the average coin transaction value persisted for most of last month, although the sample size was much smaller – a sign that Doge was being used primarily by large account holders. While growth in Doge blockchain activity has been going by leaps and bounds throughout the year, a notable spike in both of the above metrics was seen in mid-April, when traders began artificially increasing the value of Dogecoin as April 20 approached. The subsequent slowdown in network activity was accompanied by a 63% drop in the price of the dogcoin during most of May, after it had fallen from its recent all-time high of $0.73.