Despite facing competition from many new cryptocurrencies, DOGE remains the most dominant memecoin in the market with the highest market cap. However, this is not the only way it wins.
In fact, a recent report from IntoTheBlock found that Dogecoin could be the most profitable memecoin for the average investor.
Dogecoin’s momentum comes to a halt, and it continues to fluctuate
Dogecoin remains the king of memecoins with a market cap of $15 billion. However, in terms of price action, Dogecoin has struggled over the past few months.
In the spring, Dogecoin was rejected twice at the $0.22 mark, forming a double top pattern on the chart, which is a well-known bearish signal.
Since then, Dogecoin has been caught in a downtrend and has not shown any signs of reversing yet. Currently, Dogecoin is priced at $0.10 and is fluctuating within a narrow channel around this level.
The future of Dogecoin?
Given its dominance in the memecoin space, it is worth exploring the scale of its dominance.
According to IntoTheBlock’s historical inflow/outflow metric, as of this writing, 4.63 million addresses (72.4%) are experiencing inflows, while 168 million addresses (26.85%) are experiencing outflows. In addition, more than 86,000 addresses (1.35%) are in a breakeven position.
Since February of this year, more than 50% of the addresses holding DOGE are profitable. Interestingly, Dogecoin saw a sharp rise in late February. Part of the reason for this phenomenon is that most addresses may have accumulated funds before February 2024.
The cryptocurrency went through a long period of low price range between May 2022 and February 2024, during which time most holders may have accumulated funds.
On-chain data also shows that the number of addresses, especially the number of whale addresses that have held for more than a year, has been growing rapidly.
As of May 2022, the total number of Dogecoin addresses is approximately 3.85 million. At press time, the total number of addresses is 6.4 million. During the same period, the number of HODLers' addresses increased from 2.26 million to 4.68 million.
Based on the above data, it can be inferred that Dogecoin still has an impressive following, and this number is still growing.
Therefore, it could still see strong growth if the market experiences another bull run.
