The number of Dogecoin sharks and whales has grown recently
According to data from on-chain analytics firm Santiment, the number of sharks and whales has recently reversed. The relevant metric here is “supply distribution,” which tells us, among other information, how many addresses belong to a specific group of Dogecoin wallets.
Addresses are divided into these groups based on the number of tokens held in the address' current balance. For example, the 1 to 10 token group includes all wallets holding between 1 and 10 DOGE. The supply distribution for this particular group will tell us the total number of network addresses that meet this criteria.
In the context of the current discussion, two address ranges are worth noting: 0 to 100,000 coins and 100,000+ coins. The former includes small investor groups in the industry, such as retail investors, while the latter includes large entities such as sharks and whales.
Generally speaking, the more coins any address holds, the more influence it has on the network, so sharks and whales who hold large amounts of coins can be considered key groups in memecoin. Of course, whales are the more important of the two because their bags of coins are larger.
Now, here is a chart shared by the analytics firm showing the latest trends in Dogecoin supply distribution over the past few months:
As shown in the above chart, the distribution of Dogecoin supply has been rising in the range of 0 to 100,000 coins, indicating that more investors of this size are emerging on the blockchain.
More specifically, 74,885 new addresses have appeared in the range over the past four weeks. During the same time frame, the metric for the group of over 100,000 tokens has been trending downward, suggesting that some big money investors are liquidating their holdings.
Still, despite 350 Dogecoin sharks and whales having left the network in the past month, things appear to be looking up on a shorter timeframe.
Over the past few days, approximately 108 wallets of this size have appeared on the network, which could explain where memecoin’s impressive rally momentum is coming from.
Currently, both retail and large investors are witnessing the rise of the network, but whether this momentum will continue remains to be seen. Of course, given the position of sharks and whales in the market, their rising supply distribution trend is more important.