Most holders of the meme-inspired cryptocurrency Dogecoin ($DOGE) remain in a state of profit, despite an over-year-long bear market in the cryptocurrency space that saw the value of most digital assets plunge.
According to data from on-chain data firm IntoTheBlock, 57% of addresses holding Dogecoin are in-the-money, meaning they bought their DOGE tokens below current market prices, while 41% of holders are out-of-the-money, or bought their DOGE above current market prices.
The meme-inspired cryptocurrency lost over 50% of its value over the past 12 months amid a wider cryptocurrency bear market. It has been recovering over the last few months, as over the past 6 months the cryptocurrency moved up over 10%.
DOGEUSDT Chart via TradingView
As CryptoGlobe reported, late last year the largest whale on the cryptocurrency’s network moved over $280 million in the cryptocurrency to a new address, that has since become the 5th largest one on the network.
Dogecoin’s largest address, known for at one point holding 28% of the meme-inspired cryptocurrency’s circulating supply, has been tagged on explorers as belonging to the commission-free trading platform Robinhood (NASDAQ: HOOD). If the whale is indeed Robinhood, then the address is simply their cold storage wallet, where user funds are kept.
Others, however, speculate the wallets belong to Tesla, Twitter, and SpaceX CEO Elon Musk. Musk has said DOGE is his favorite cryptocurrency and has promoted it on social media while adding it as a payment option for Tesla merchandise.
On-chain analysis service Lookonchain has shared data suggesting Musk is behind the whale address, as the whale added large amounts of tokens at times that coincided with Elon Musk’s tweets about the cryptocurrency.
It’s worth noting that these inflows could also be related to $DOGE holders moving their funds to Robinhood to trade the cryptocurrency based on Musk’s words, as he has been known to move the cryptocurrency’s price.
As reported, Search interest for the meme-inspired cryptocurrency exploded during the cryptocurrency’s massive 10,000% price rally, going from an average of 135,000 monthly searches in April 2020 to 16.5 million in April 2021.
Interest in DOGE has since waned amid a wider cryptocurrency market downturn. Nevertheless, the cryptocurrency’s market cap has recently surpassed that of Nasdaq-listed cryptocurrency exchange Coinbase.