The popularity of the humor-infused cryptocurrency, dogecoin (DOGE), continues to surge, even two years post the initial coronavirus pandemic. This period, which initially witnessed individuals seeking amusement through speculative investments in non-serious digital assets, has led to a notable expansion in DOGE’s user base.
Recent data from IntoTheBlock, an on-chain analytics firm, reveals that the number of cryptocurrency addresses holding DOGE has surpassed 5 million for the first time. Concurrently, the count of active addresses on the DOGE network has more than doubled to 168,000, marking the highest figure since March 2022.
Additionally, the number of confirmed transactions on the Dogecoin blockchain has surged to its peak since June, witnessing a remarkable 1,000% increase in the past 10 days.
While these statistics depict a thriving ecosystem, concerns linger regarding the concentration of DOGE ownership. According to BitInfoCharts, fewer than 5,000 addresses control over 80% of DOGE’s supply, underscoring the influence a relatively small number of traders wield over the cryptocurrency’s valuation.
The market capitalization of DOGE has experienced a 14% uptick, reaching almost $11 billion this month. This uptrend aligns with the common trend in the cryptocurrency space, where increased adoption and utilization often lead to a corresponding surge in market value.
Notably, dogecoin gained widespread attention in early 2021 when Elon Musk, a prominent figure in the tech industry, shared memes related to the coin. This move by Musk not only propelled DOGE into the limelight but also inspired the creation of other canine-themed tokens, such as Shiba Inu.
The broader surge in joke cryptocurrencies during that period can be attributed to a confluence of factors, including the lockdown measures, government stimulus checks, and unprecedented monetary policies by central banks, all of which fueled a heightened appetite for risk in financial markets.