Cryptocurrency News

Dogecoin whale activity slows down as billions of dollars come out of the blockchain

After the haggle of activity that saw Dogcoin (Doge) Briefly process higher dollar-value of daily transactions than bitcoin (B T c) And ether (ETH) Combined, the Doge seems to be slowing down on the blockchain.

During 2021, the price of Dogcoin increased equally, as well as the value of transactions on its blockchain. Doge dollar value Wallet-to-wallet shipments reached $ 82 billion on May 5, up from $ 35 billion recorded on bitcoin and $ 12 billion on Ethereum.

Pushing two of the world’s most famous blockchains is even more surprising, given that as recently as December 2020, Dogcoin handled a daily total of as little as $ 10 million. The new eyes were brought to Dogcoin by Tesla CEO Elon Musk in 2021, and focused efforts by social media merchants with the intention of pumping Dogcoin at par with the gaming retailer’s shares, GameStop.

And while normal activity on Dogecoin remains well above the December low, a significant vicissitudes were observed in May suggesting that whales may exhaust the Doge.

Dogcoin processed only $ 5 billion of daily transactions on May 26, 93% less than the $ 82 billion recorded earlier in the month.

Meanwhile, Doge’s Average transaction value It fell sharply from $ 1.16 million on May 23 to less than $ 240,000, three days later on May 26, a drop of nearly 80%. Despite coming through a much smaller sample size, the oversized average transaction value of the coin remained for most of the previous month – a sign that Doge was being used primarily By large account holders.

Although the ramp up of activity on the Doge blockchain resulted in scattered spikes throughout the year, a significant increase in the two metrics mentioned above was seen in mid-April, as traders began to try to artificially pump Dogcoin’s value into leads. Had given. By 4/20 days.

The Doge coin price fell by 63% for most of May, with a subsequent decrease in network activity as it fell from its recent high of $ 0.73.