A report by data analytics platform Chainalysis shows new investors are adopting Dogecoin at levels not seen since the 2017 bull run. v
As The Daily Hodl reported on August 18, Chainalysis says in this new report that new investor adoption has surged in 2021, rivaling the cryptoasset bull market at the end of 2017. The report claims the demand and price action for $DOGE has been “largely driven by social media.” However, the analytics company claims activity on Dogecoin’s blockchain indicates a jump in investment and new user adoption.
The report claims investors purchasing DOGE for the first time in the past six months now account for one-quarter of the coin’s total supply, up from just 9% during July 2020:crypto
New investors returned again in July 2020 on the back of the TikTok trend, increasing their holdings from 9% to 17% of supply by October 2020. New investors acquired even more from January 2021, as Elon Musk and Reddit raised the profile and the price of DOGE.
Long-term investors in DOGE, which Chainalysis defines as holding for greater than two years, decreased during the same period, falling from 30% in July 2020 to 20% last month.
Despite new investment, Chainalysis’s report shows the majority of DOGE remains concentrated in the wallets of whale investors. While new investors make up “1 to 2 million” of the active users on DOGE’s blockchain, ownership is still “highly concentrated in a very small number of entities.” Chainalysis speculates these wallets either represent retail exchanges or early investors.
A similar report by user-friendly trading app Robinhood showed Dogecoin volume has skyrocketed this year. According to the trading platform, 62% of its cryptocurrency revenue in the second quarter came from the trading of DOGE, up from 34% in the first quarter.
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