Dogecoin just experienced a roughly 10% rally after on-chain data showed a large number of holders exiting the DOGE network.
Dogecoin is up nearly 12% in the past day
The cryptocurrency industry as a whole has been on a bull run this week, but among the top currencies, one asset in particular stands out: Dogecoin. The meme-based token has gained nearly 12% in the past 24 hours, managing to break through the $0.127 level.
To put it in perspective, Bitcoin (BTC) is up about 4% in the same time frame, while DOGE competitor Shiba Inu (SHIB) is up about 5%. The asset is also doing well in terms of weekly returns, with only Bitcoin Cash (BCH) coming close to DOGE’s 14% return at 12%.
As shown in the table below, DOGE’s market cap has now grown to $18.5 billion.
Ranked 8th on the cryptocurrency rankings, DOGE is now significantly behind 9th-ranked Tron (TRX), but the coin is still far behind 7th-ranked XRP (XRP), so its position in the field is unlikely to change in the short term.Dogecoin’s latest rally comes amid interesting circumstances, as on-chain data shows that a large number of holders have only recently decided to abandon the memecoin.
The total number of DOGE holders has dropped significantly recently
According to data from on-chain analytics firm Santiment, the total holdings of Dogecoin have dropped significantly recently. “Total holdings” here refers to a metric that, as the name suggests, tracks the total number of DOGE addresses that currently hold a balance.
Below is a chart shared by the analytics firm showing how DOGE’s metrics have been trending over the past few months:
As can be seen from the chart, the total holdings of Dogecoin have seen a significant drop recently, which means that a large number of users have decided to clear their holdings on the network.
More specifically, about 106,600 addresses were emptied in the past week, bringing the metric down to 6.62 million, the lowest value since April. These investors may have grown tired of the memecoin’s bearish price action and decided to leave and seek alternatives. However, in an irony of fate, Dogecoin has risen more than any other top coin since these traders left.
Capitulation on the weak side also means that the current rally may have a higher chance of success, as the coins issued by these investors may have been bought up by more conviction traders who may be willing to hold on to their profits for a while longer.
