Recently, the popular meme cryptocurrency Dogecoin (DOGE) has been experiencing worrying developments behind the scenes. According to data from IntoTheBlock, inflows and outflows from large investors (those holding at least 0.1% of the circulating supply) show a significant decrease in whale on-chain activity since early September. Specifically, capital inflows have dropped from 229 million DOGE per day to 27.96 million DOGE, a decrease of 87.81%. As for capital outflows, wallet outflows from large investors also dropped to 17.42 million DOGE, a decrease of 80.7% from 18.129 million DOGE. As a result, the net flow of Dogecoin into whale wallets was 10.54 million DOGE, a fourfold decrease from the previous day.
Interestingly, Dogecoin whale activity saw a drop in early September. As many of you know, September is typically a challenging month for cryptocurrencies, related to seasonal and market factors. Historically, September has been a weak month for financial assets as investors reassess their portfolios after returning from the summer break, often leading to profit-taking and selling pressure. However, September has historically tended to be better for DOGE, with Dogecoin’s average profitability of 11.3%, for example, and Bitcoin’s -6.21%.
It remains to be seen what will happen to Dogecoin over the next 30 days and whether this represents a decline in activity from major players. But what is certain is that if there is a major price movement in DOGE, there will be major players involved. Please follow me for more cryptocurrency news.