Dogecoin, initially created as a joke cryptocurrency, has witnessed a significant milestone with over 5 million cryptocurrency addresses now holding DOGE. This surge in adoption, tracked by analytics firm IntoTheBlock, showcases the growing popularity of Dogecoin since the pandemic began. The network's active addresses have more than doubled, reaching 168,000, the highest since March 2022. Moreover, the confirmed transactions on the Dogecoin blockchain have skyrocketed by 1,000% in just ten days.
However, this growth comes with concerns about the concentration of DOGE ownership. Data from BitInfoCharts reveals that fewer than 5,000 addresses control over 80% of DOGE's supply, indicating that a small group of traders can significantly influence the cryptocurrency's price. Despite this, Dogecoin's market capitalization has increased by 14%, reaching nearly $11 billion.
Dogecoin gained mainstream attention in early 2021, particularly after high-profile endorsements like Elon Musk's tweets. This period also saw the rise of other dog-themed tokens such as Shiba Inu, fueled by the global coronavirus lockdown, governmental stimulus checks, and monetary policies encouraging risk-taking in financial markets.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
