Dogecoin is grabbing headlines and speculation from its wide community of investors after a recent whale accumulation from a crypto exchange. On-chain data shows an accumulation trend from this whale, with the latest being the acquisition of 300 million DOGE tokens worth $45 million at the current market price. These speculations have led to theories on who the whale buyer might be amidst a continued price decline for Dogecoin, with the most prominent hypothesis being billionaire Elon Musk.
Whale Amassing Dogecoin
Dogecoin is currently on an extended price decline, with its price now down by 25.8% in the past seven days. However, on-chain data shows that a particular whale has been buying the dip, which is a testament to their strong belief in the cryptocurrency.
Whale Alerts, a crypto whale transaction tracker, noted a DOGE accumulation from crypto exchange Robinhood into the private wallet “DDuXGM” amidst a flurry of other whale transactions in other cryptocurrencies. The transaction involved the movement of 150 million DOGE worth $23.5 million from Robinhood into the unknown wallet.
It is interesting to note that a further investigation into the whale’s on-chain activities reveals that this was not a one-time buy. The whale had acquired another 150 million and 30 million DOGE tokens worth $23.1 million and $4.8 million respectively in the hours before the last purchase.
Elon Musk’s tweets in the hours leading up to the purchase have only fueled speculation that he may be the whale. Just hours before, the billionaire tweeted a meme picture mentioning Dogecoin, which led to some speculations among investors. Musk has been a vocal proponent of Dogecoin for months, and his tweets are known to cause spikes in the price of DOGE. However, it is important to note that his recent tweet failed to do many wonders for the price of DOGE as the crypto continued on its month-lasting correction.
According to MartyParty, a prominent crypto influencer, the accumulation could be in response to a recent announcement from BITMAIN, a company producing crypto mining equipment. BITMAIN recently revealed its plans to expand support for DOGE mining after its Antiminer L9 release in May. Bitmain’s Antiminer L9 model will support mining operations for Litecoin, Dogecoin, and Bells (BEL), which are some of the still-existing proof-of-work blockchains.
DOGE Overview
Dogecoin is a cryptocurrency that was created on December 6th, 2013 based on the popular “DOGE” internet meme and features a Shiba Inu on its logo. The codebase of the project was a fork of Litecoin, in which most of the same features such as the hash hashing algorithm were inherited, with the only difference of branding and large inflationary supply.
Introduced as a “joke currency”, Dogecoin quickly developed its online community and reached a capitalization of US$60 million in January 2014. Compared with other cryptocurrencies, Dogecoin had a fast initial coin production schedule: 100 billion coins were in circulation by mid-2015, with an additional 5.256 billion coins every year thereafter. As of 30 June 2015, the 100 billionth Dogecoin had been mined.
At the time of writing, DOGE is trading at $0.1543 with an increase of 6.3. The trading volume is $2,652,238,076 in the last 24 hours, representing an increase from one day ago and signaling a recent rise in market activity and the market capitalization is $22,229,269,091.
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Source: CoinGecko
Conclusion
The recent accumulation of Dogecoin by a significant whale investor has sparked speculation within the cryptocurrency community, particularly amidst Dogecoin’s ongoing price decline. Despite the downturn, on-chain data reveals consistent buying activity from this whale, raising questions about their identity and intentions. Many speculate that billionaire Elon Musk could be behind the purchases, given his previous support for Dogecoin. However, the exact buyer remains unknown. Additionally, news of Bitmain’s plans to expand support for DOGE mining may have influenced the accumulation. As Dogecoin’s price continues to fluctuate, the community remains attentive to developments that could impact its future trajectory.
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