After the news broke that Elon Musk had finalized the purchase of Twitter for $45 billion, his favorite cryptocurrency Dogecoin (DOGE) reacted as it has time and again when its main proponent said or did something meaningful or controversial.
This time, DOGE has reached a four-month high in transactions by whales, suggesting they may be positioning for a big price move in the future, as crypto analyst Ali Martinez tweeted on April 26.
To drive his point home, Martinez posted a chart that shows an increase in the number of large transactions on April 25, along with a slight increase in price.
Specifically, the number of transactions on the DOGE network with a value greater than $100,000 reached a four-month high at 2,440 transactions.
Only whales move doge
Market data shows that relatively few hands are moving huge amounts of DOGE. It has been a Dogecoin day on May 5 as the crypto continued its assault on the crypto market listings. The meme coin ‘flippened’ XRP to become the fourth-biggest crypto by implied market cap, after surging to reach an all-time high of $0.69.
The latest all-time high was the price target that was set by traders on social media.
Nonetheless, crypto’s latest media darling may not be as wholesome as it appears. For all that hype that is surrounding Dogecoin, and its de facto master Elon Musk, publicly available data reveals that only a few people are using the blockchain.
Notably, the few people using the blockchain are accounting for an incredibly huge portion of its general activity. Notably, the dollar value of the coins sent across the Dogecoin blockchain on May 4 surpassed $58 billion.
Elon Musk Offers to ‘Pay Actual $’ If Dogecoin Whales Empty Their Wallets
After claiming that there’s too much concentration in the dogecoin (DOGE) ownership, the world’s richest person, Tesla founder Elon Musk has offered a solution.
“I will literally pay actual $ if they just void their accounts,” he tweeted today.
Several hours earlier he claimed that if major DOGE holders sell most of their coins, “it will get my full support.”
“Too much concentration is the only real issue [in my opinion],” Musk said.
At the time of writing (11:10 UTC), DOGE, ranked 13th by market capitalization, trades at USD 0.0575 and is up by 2.4% in an hour, trimming its daily losses less than 10%.
Only whales move dogeat
This figure was 70% higher than the amount transferred on Bitcoin (BTC) $34 billion and around 260% higher than on Ethereum (ETH) $16 billion.
Exploring on-chain data further it is clear that despite Dogecoin moving a higher value of coins than the two biggest cryptos in the world, it achieved all that with a small fraction of their transactions.
More than 1.4 million transactions were counted on the Ethereum blockchain yesterday, based on data from Bitinfocharts. Also, nearly 300,000 transactions were counted on Bitcoin. On the other hand, around 76,000 transactions were recorded on the Dogecoin blockchain, indicating that there is a major wealth gap that is emerging in this market.
When looking at DOGE’s average transaction value on the day in question, it reached nearly double the value recorded for Bitcoin.
Only whales move dogehin
The whale’s original transaction moving nearly 263 million DOGE cost them only around $0.11 in fees, which is the price the meme-inspired cryptocurrency is currently trading for.
The whale’s large transaction was first reported on by Benzinga, which noted that it came at a time in which the cryptocurrency market has been shaken by significant geopolitical and economic forces, and that the transaction comes after DOGE whales made 118 transactions worth over $2 million in a single day.
These whale transactions started surging shortly after Tesla CEO Elon Musk revealed on social media that he still owns and “won’t sell” his cryptocurrency holdings, which include Bitcoin ($BTC), Ethereum ($ETH), and DOGE.
To Musk, physical assets like real estate or stock in companies people believe “make good products” should be preferable to fiat currencies like the U.S.
Only whales move dogeza
Musk took great pleasure in posting Doge memes to his 52 million followers on Twitter in much of 2021.
Nonetheless, it should also be made clear that the coin’s recent surge to $0.69 is the same price target that was set by Reddit traders intent on artificially pumping DOGE’s valuation. This price point was originally intended to be reached on April 20. That would have been a joke on top of a joke on 4/20 day.
At the time, DOGE managed to reach a price of $0.420.
But today, a little more than two weeks later, it has achieved its jocular goals. The eventual price point being pursued by the traders is one dollar.
If additional evidence is required to ensure that the markets are not always rational, no more than this year’s GameStop pump, where the share price of an almost ‘dead’ brand increased by more than 9,000%.
Musk’s comment came shortly after he revealed Tesla and SpaceX are “seeing significant recent inflation pressure in raw materials & logistics.”
The movements notably also come at a time in which the cryptocurrency market appears to be recovering. The MVIS CryptoCompare Digital Assets 10 Index, a “modified market cap-weighted index which tracks the performance of the 10 largest and most liquid digital assets,” is up over 2.7% in the last 24-hour period.
Late last year, as CryptoGlobe reported, Musk revealed he believes DOGE is better for transactions than other cryptoassets like BTC. At the time, Musk said bitcoin’s transaction volume is low while its cost per transaction is high, making it more suitable as a store of value.
Martinez also posted a chart showing that DOGE looks to be heading to $0.24, after breaking out from a falling wedge pattern on the seven-day charts.
However, he did warn that:
“Failing to hold above the $0.13 support level can invalidate the bullish outlook for DOGE.”
It is also worth noting that Finbold earlier reported on DOGE adding as much as $2 billion to its market capitalization in only one hour, as Musk was still trying to reach a deal over the proposed takeover of the Twitter (NYSE: TWTR) platform.
As a direct consequence of the confirmed takeover news, the price of Dogecoin skyrocketed, rising from $0.1248 to a high of $0.1374 in under an hour, and its market cap from $16.56 billion to $18.64 billion in an hour.
At press time, DOGE was trading at $0.1652, up 32.68% over 24 hours and 18.16% across the week, as per CoinMarketCap data.
Moreover, the number of entirely synced nodes is about 26% of the general node count. Synced nodes are computers that run copies of the Dogecoin blockchain. This suggests that few people are willing to make the effort to maintain the blockchain’s network security.
Dogecoin Market Trends
Although the dogehouse appears to be a ghost town, the mindblowing reality remains that DOGE is the best-performing digital asset in the crypto space currently.
This coin recorded 14,000% growth since January 1, when it was priced at a fraction of a cent.
Both credit and blame for DOGE’s somewhat irrational ascent have already been placed on the ‘Dogefather’ himself, Elon Musk.
Dogecoin’s (DOGE) dramatic surge up the market cap rankings coincided with the re-awakening of the DOGE whales as the blockchain’s metrics surged to new heights in the last 24 hours. This means that DOGE’s price explosion coincided with the movement of a lot of coins across this blockchain.
At least $12 billion worth of DOGE was transferred across the blockchain within 24 hours, based on data from BitInfoCharts. To put that number into context, the ETH blockchain processed just $6 billion worth of Ether (ETH) on the same day.
Ether is the second-biggest crypto in the world by market capitalization and its blockchain is the most actively developed globally; with twice as many monthly investments on GitHub as Bitcoin (BTC).
Dogecoin started as a meme coin that was created as a joke in 2013.