Dogecoin has experienced a remarkable rally, soaring over 150% in the past week. Recent on-chain data highlights the resurgence of sharks and whales within the network, signaling a significant shift in the dynamics of this popular memecoin.
Resurgence of Dogecoin Sharks and Whales
Data from the on-chain analytics firm Santiment reveals a recent increase in the number of sharks and whales associated with Dogecoin. This observation is based on the “Supply Distribution” metric, which provides insights into the distribution of tokens across various wallet groups on the network.
Wallet addresses are categorized into different cohorts based on the quantity of Dogecoin they hold. For instance, the 1 to 10 coins group encompasses all wallets containing between 1 and 10 DOGE. The Supply Distribution metric helps track the total number of addresses that belong to each specific cohort.
Understanding Address Ranges and Their Significance
In the context of Dogecoin, two key address ranges are noteworthy: those holding 0 to 100,000 coins and those with 100,000+ coins. The former represents smaller investors, such as retail participants, while the latter includes larger entities like sharks and whales.
The influence of any address on the network typically correlates with the quantity of Dogecoin it holds. Consequently, sharks and whales wield considerable influence due to their substantial holdings, with whales being even more critical due to their larger bags of tokens.
Recent Trends in Dogecoin’s Supply Distribution
The chart shared by Santiment illustrates the evolving trend in Dogecoin’s Supply Distribution over the past few months. Notably, the 0 to 100,000 coins group has seen an upward trajectory, indicating an influx of new investors within this range.
Specifically, around 74,885 new addresses have emerged in this category over the last four weeks. Conversely, the 100,000+ tokens cohort has experienced a decline, suggesting that some large investors have been offloading their holdings.
Shifting Dynamics in the Memecoin Network
Despite the departure of 350 Dogecoin sharks and whales in the past month, recent developments on shorter timeframes hint at a positive shift. Approximately 108 wallets of significant size have appeared on the network in recent days, potentially fueling the memecoin’s impressive rally.
Both retail and large holders are currently experiencing growth on the network. However, the sustainability of this momentum remains uncertain. The uptrend in the Supply Distribution of sharks and whales is particularly crucial, given their pivotal role in the market.
DOGE Price and Market Outlook
At present, Dogecoin is trading at approximately $0.383, marking a substantial increase of over 21% within the last 24 hours. The recent price trajectory indicates a bullish trend, further solidifying Dogecoin’s position in the cryptocurrency market.
As the memecoin continues to capture the attention of investors, the dynamics of supply distribution and the activities of influential stakeholders like sharks and whales remain critical factors to watch. The future trajectory of Dogecoin will depend on whether this renewed enthusiasm can sustain its momentum.
