Why Dollar Value Transferred On Dogecoin Exceeded Bitcoin, Ethereum By Over 70%

Popular meme-based cryptocurrency Dogecoin (CRYPTO: DOGE) extended its week-long rally to new all-time highs above its long-awaited price point of $0.69.

What Happened: The coin gained 100% over the past seven days, taking its market cap over $85 billion, making it the fourth-largest cryptocurrency after Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO; ETH), and Binance Coin (CRYPTO; BNB).

As retail investors celebrated Dogecoin’s success, Tuesday’s on-chain data provided somewhat alarming revelations about the extent of concentration in Dogecoin ownership.

According to data from BitInfoCharts, the U.S. dollar value of coins sent on the Dogecoin blockchain on Wednesday was over $58 billion. Comparatively, the amount sent on Bitcoin and Ethereum was only $34 billion and $16 billion, respectively, making the value sent across Dogecoin 70% higher than Bitcoin and 260% higher than Ethereum.

Why It Matters: Despite moving a much larger value of coins, the number of transactions itself was negligible compared to Bitcoin and Ethereum. Bitcoin had 293k transactions on its network, and Ethereum had over 1.46 million.

Dogecoin saw only 76k transactions, signaling Dogecoin’s largest holders were responsible for the majority of transactions.

Still, market participants that owned the cryptocurrency were seemingly unconcerned about the number of whales in the ecosystem and their potential influence on the value of their DOGE investments.

So many whale attacks. We are still standing. I love doge coin community. #Dogecoinarmy #DOGE

— Tak ? (@Tak31860856) May 4, 2021

A Galaxy Digital Research report, exploring the evolution of Dogecoin over the years, attributes the coin’s success despite its lacking infrastructure to the fact that “people love a good joke.”

“Dogecoin has always been a joke, and the joke keeps getting funnier,” said Galaxy Digital’s head of research Alex Thorn.

Image: Horsebalm via Reddit