It was the afternoon of Doge Day on Wednesday again when Dogecoin (DOGE) continued to climb the cryptocurrency market cap rankings.. The meme coin outperformed XRP and became the fourth largest cryptocurrency through implied market cap after climbing to a valuation per coin of $ 0.69 – a target specifically set by traders on social media.
However, the newest cryptocurrency most loved by the media may not be as healthy as it sounds. Despite all the hype surrounding Dogecoin (and its de facto teacher Elon Musk) Publicly available data suggests that relatively few people actually use the blockchain network, and those who do make up an incredibly large part of their global activities.
Note that the dollar value of coins sent over the Dogecoin blockchain network on Tuesday exceeded $ 58 billion. That number was 70% higher than the amount transferred in Bitcoin ($ 34 billion) and 260% higher than that of Ethereum ($ 16 billion).
If we dig deeper into the on-chain data, we see that Despite the fact that Dogecoin moves a higher value of coins than the two largest cryptocurrencies in the world, it did so with just a fraction of its transactions.
Yesterday, according to Bitinfocharts, more than 1.4 million transactions were recorded on the Ethereum blockchain, while around 300,000 transactions were recorded in Bitcoin.. If we compare this to the 76,000 registered on the Dogecoin blockchain, An obvious wealth gap is emerging.
If you look at the average value of Dogecoin transactions on that day, This was almost twice as much as in Bitcoin (BTC). The median value of DOGE transactions was $ 800,000 compared to $ 420,000 for BTC. Its Ethereum statistics paint an even worse picture: Dogecoin average transaction value exceeded Ethereum’s by 8,000%, despite only processing 5% of the number of transactions.
Combined with the reality that a single address contains 28% of all existing currencies, while only 12 represent 67%It’s clear that Dogecoin isn’t exactly the popular favorite that stakeholders want the public to believe in.
A recent report from Galaxy Digital adds to the misery over Dogecoin’s general inauthenticity as a true cryptocurrency project. Titled “Dogecoin: The Honest Sh * tcoin” (Dogecoin: the most honest sh * tcoin), the report highlighted the fact that the Dogecoin GitHub repository (where developers record updates to code from the blockchain network) has not been touched since 2017. In addition, the number of fully synchronized nodes (computers running copies of the Dogecoin blockchain) is only 26% of the total number of nodes. This suggests that few people are willing to care about the security of the blockchain network.
But even if Dogehouse looks like a ghost town The obvious reality remains that Dogecoin is the most powerful digital asset in the cryptocurrency space. The coin has seen 14,000% growth since January 1, when its price was a fraction of a cent.
Both the recognition and the guilt for Dogen’s seemingly irrational rise have been attributed to the “Dogefather” himself. Elon Musk, who really enjoyed sending Doge memes to his 52 million Twitter followers for much of 2021.
However, Also keep in mind that the coin’s recent spike of $ 0.69 is the same price target set by Reddit traders with the intent of artificially boosting DOGE’s valuation. The target price should be hit on April 20th – one joke about another joke on April 20th. Dogecoin only hit a price of $ 0.420 (boom) at the time, but now, a little over two weeks later, it has finally hit its fun goals. The final price level traders track is $ 1.
When more evidence is needed that markets are not always rational, No longer to see this year’s GameStop pumpingwhere the stock price of a near-dead mark rose more than 9,000%.
“Dogecoin has always been a joke, and the joke just keeps getting funnier.”The Galaxy Digital report stated. The author of the report and head of research at Galaxy Digital, Alex Thorn, praised Dogecoin for its unpretentiousnessNoting that the coin’s assets were not tied to the announcements or promises made by the foundation’s developers and that its sole purpose was to provoke a response.
“The longevity of Dogecoin is guaranteed as long as it remains child’s play: people love good jokes”Thorn closed.