Dogecoin Sees Surge in Adoption, With Over 5 Million Addresses, Despite Concentration Concerns
The market value of Dogecoin (DOGE) has experienced a 14% rise, reaching nearly $11 billion this month, marking continued momentum for the once humorously dubbed cryptocurrency. The surge in adoption comes even as concerns about the concentration of DOGE ownership persist.
Data from on-chain analytics firm IntoTheBlock reveals that the number of cryptocurrency addresses holding DOGE has surpassed the 5 million mark for the first time. Simultaneously, the number of active addresses on the DOGE network has more than doubled, reaching 168,000—its highest level since March 2022. Additionally, the confirmed transactions on the Dogecoin blockchain have surged to the highest since June, witnessing a remarkable 1,000% increase over the past 10 days.
While these statistics underscore the growing popularity of Dogecoin, the issue of concentration in ownership remains prominent. According to BitInfoCharts, a relatively small number of addresses, fewer than 5,000, control over 80% of DOGE’s supply, highlighting a potential vulnerability where a limited number of traders can influence the cryptocurrency’s price.
The market capitalization of DOGE has seen a significant 14% increase, reaching almost $11 billion this month. The correlation between greater adoption and cryptocurrency usage and an increase in market value is a well-established trend.
Dogecoin rose to prominence in early 2021 when Elon Musk’s tweets featuring DOGE-themed memes captured public attention. This led to the creation of other dog-themed tokens, such as Shiba Inu. The surge in joke cryptocurrencies during that period can be attributed to factors like the coronavirus lockdown, government stimulus checks, and unprecedented monetary easing by central banks, fostering risk-taking behavior across financial markets. As DOGE continues to navigate the crypto landscape, the balance between its widespread adoption and concerns about ownership concentration remains a focal point for observers and investors alike.