Dogecoin Hits 5 Million Addresses, But Concentration Issues Still Linger

Crypto News- The allure of the playful cryptocurrency, Dogecoin (DOGE), persists and even thrives two years after the onset of the COVID-19 pandemic. Supposedly, during the pandemic, individuals sought amusement by dabbling in non-serious digital assets, and DOGE emerged as a prime choice. Recently, data from the on-chain analytics firm IntoTheBlock reveals that the number of cryptocurrency addresses holding DOGE has surpassed the 5 million mark for the first time.

Dogecoin Hits 5 Million Addresses, But Concentration Issues Still Linger

Simultaneously, the network’s vitality is evident as the count of active addresses has more than doubled, reaching 168,000, the highest since March 2022. Furthermore, the confirmed transactions on the Dogecoin blockchain have spiked to the highest level since June, experiencing a remarkable 1,000% surge in the past 10 days.

While these statistics showcase the growing interest and engagement with Dogecoin, a persistent concern looms over the concentration of ownership. BitInfoCharts notes that fewer than 5,000 addresses command over 80% of DOGE’s total supply, underscoring the potential influence that a handful of traders could wield over the cryptocurrency’s market price.

In the financial realm, DOGE’s market capitalization has witnessed a 14% surge, reaching nearly $11 billion in the current month. This rise in market value is often associated with increased adoption and usage of the cryptocurrency, demonstrating its evolving role in the broader landscape of digital assets.