Around 100 People Control DOGE's Entire $46B Market: Report
Dogecoin (CRYPTO: DOGE) has been hard to ignore lately, as the meme-based cryptocurrency rose to become the sixth-largest with over $46 billion in market cap.
What Happened: With 7,000% year-to-date returns and considerable outperformance against several top cryptocurrencies, DOGE’s appeal to retail investors has steadily been on the rise.
However, several crypto influencers and traders have cautioned against going “all-in” on DOGE, citing concerns of a few large holders controlling the majority of its supply.
See also: How to Buy DOGE
Over 65% of Dogecoins are distributed among just 98 wallets across the world, while the single largest wallet holds 28% of all Dogecoins.
In fact, just five wallets control 40% of the coin’s supply.
Essentially, around 100 people control the entire $46 billion DOGE market.
“The scam is simple - Hold on to Dogecoin till there is enough traction after it multiplies, dump all coins and cash out - Become instant billionaires,” said Akand Sitra of cryptocurrency risk management platform TRM Labs.
Why It Matters: Sitra’s analysis of DOGE’s supply distribution was possible due to the nature of blockchain transactions, which are available for anyone to see on the open distributed ledger.
Some on-chain analytics of the top DOGE holders led experts to believe that the cryptocurrency’s supply is concentrated among just a few holders.
“The Dogecoin bubble will burst by the end of this year, easily,” said Sitra.
Other traders in the space echoed this sentiment, calling it the reason why they will never be in DOGE “no matter the gains.”
Why I'm not in $DOGE and will never be no matter the gains. https://t.co/jFVU2yQf03
— QuartzHands (@NFTiepie) April 19, 2021
At press time, DOGE was trading at $0.3976, up 32% overnight and 394% in the past seven days. DOGE holders were preparing for April 20, where a large group of retail traders has predicted the coin will touch $0.69.
See Also: Dogecoin Creator Defends Meme Crypto's Supply: Doesn't 'Matter For Price'
Image: Ivan Radic via Flickr
See more from Benzinga
DeFi Blue Chip Season? Here's What Cryptos Coinbase Employees Are Buying Right Now
Investors In Disbelief As DOGE Becomes Top 5 Crypto With B Market Cap
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
