Dogecoin – the dog-themed Shiba Inu cryptocurrency – started out as a joke in 2013, but slowly but steadily made some space for itself. This year, so far, Dogecoin has emerged as one of the most traded cryptocurrencies. However, meme-based digital currency remains largely concentrated in a few hands. A gigantic sum of DOGE 106 billion, comprising 82 percent of the supply, is held in a chain by just 535 entities. These entities hold more than DOGE 10 million each.
Figures from the last six months, since Elon Musk and Reddit started focusing on Dogecoin, paint another very interesting picture. Investors, who purchased DOGE tokens over the past six months, now hold 25% of the total offering. The price of Dogecoin in India was at Rs. 21.78 from 5pm IST on August 30th.
According to a report by market intelligence firm Chainalysis, the price of Dogecoin skyrocketed only after Tesla CEO and Reddit turned their attention to the meme token. In its report, Chainalysis said new investors are adopting the token at a level not seen since the end of 2017. New investors increased their stake in the offering from just 9 percent in July last year to 25 percent in August this year. .
In stark contrast, the share of investors who owned Dogecoin for more than two years dropped from 30% in July 2020 to 20% in August 2021.
Dogecoin supports: how it all adds up
There are a total of 4 million Dogecoin holders in jail. However, only a small number of extremely wealthy entities own a large share of the supply. Chainalysis says these 535 entities are likely a combination of businesses, including exchanges that stock DOGE for traders and some other wealthy investors. Among the 535 richest accounts that hold 82% of the offer, at least 31 investors hold DOGE 37 billion out of DOGE 106 billion and have held them for a period of six months to two years.
Among other investors, 2.1 million of the 4 million entities own less than DOGE 100 each, with half of those entities holding the cryptocurrency for more than two years.