Over the past several months, the crypto market has witnessed a major reshuffling of Dogecoin ownership as large holders—often referred to as ‘whales’— diminish their dominance over the number of coins in circulation. This shift marks a notable trend towards greater decentralization within the Dogecoin ecosystem.
Although the trend toward wider distribution could affect the asset’s liquidity and market structure, which have been the purview of a handful of large investors.
A recent report by leading blockchain data company IntoTheBlock reflected this shift. The numbers show that the percentage of Dogecoin held by wallets owning more than 0.1% of the total circulating supply fell from 45.3% to 41.3% in the last twelve months.
This decrease illustrates a slow and steady transfer of Dogecoin to retail investors leading to a more stable and resilient asset that is harder to manipulate in the markets.
Market Impact and Future Outlook
With the distribution of Dogecoin increasing into the hands of retail and mid-range investors, the dynamics of this meme coin are shifting as well. In the past, whales have had the power to drastically manipulate markets by making massive buy or sell orders. Yet with Dogecoin owned by a far broader base of people, its market dynamics become less subject to the caprice of a few.
Over the past year, the largest Dogecoin whales have been reducing their holdings. The percentage of the supply held by those owning more than 0.1% each has dropped from 45.3% to 41.3%. In contrast, retail and mid-sized investors now hold a larger share of the total supply. pic.twitter.com/whFARLYveS
— IntoTheBlock (@intotheblock) June 18, 2024
The redistribution trend echoes a turbulent period for Dogecoin, and the wider crypto market. Over the past 24 hour, the price of Dogecoin has decreased by almost 10%, with a drop in the price over the past 7 days of about 12.5%! On the other half, Dogecoin has a trading value of around $0.211 and is experiencing difficulties in maintaining the market capitalization above $18 billion.
This redistribution of holdings might be a double-edged sword, possibly causing a reduction in price manipulation by whales, but also giving more coins to trigger-happy retail investors.
In addition to this, the report from IntoTheBlock also reveals the wider ramification for the future of Dogecoin. This could reignite the community effort behind Dogecoin: this once again helping drive appreciation in value as an unlikely consumer coin in the future.
Moreover, this gradual opening of ownership may well lead into stronger and testy communities, which would be beneficial in terms of stability and growth down the road of the coin.