Dogecoin (DOGE) the meme cryptocurrency has become an internet sensation – partly fueled by Tesla CEO and Doge father Elon Musk. Dogecoin established a new all-time high at $0.69 in a price rally. At the time of press, the cryptocurrency stands at a price level of $0.67. The price of Dogecoin is up by a whopping 40% while the daily trading volume has shot up by 170%.
The meme cryptocurrency has taken over Ripple (XRP) and now stands at fourth place in terms of market capitalization. The move does not come as a surprise for many as the community on social media has been pushing the cryptocurrency upwards ever since the beginning of the 2021 bull run. The $0.69 target achieved by Dogecoin was specifically set by users on social media platforms.
However, as much as the Dogecoin is hyped up on social media, data reveals that the cryptocurrency may not have as much a strong backing as suggested by the internet. Publicly available data shows that the price rally may be accorded to only a handful of investors – or whales – instead of s huge following. The dollar value of DOGE sent across the blockchain on Tuesday was more than $58 million which is higher than both Ethereum and bitcoin’s combined value ($50 million). But the interesting part is where Ethereum had 1.4 million transactions on its blockchain Dogecoin only had 76,000.
Moreover, one single address holds 28% of all Dogecoin while 12 addresses together hold 67% of the Dogecoin. Dogecoin may not be the darling as social media has portrayed it to be. Doge critics believe the coin does not have any intrinsic value and its fall is imminent. Analysts are also suggesting that Elon Musk’s Saturday Night Live appearance may not bode well for the cryptocurrency.