Dogecoin is heavily concentrated in the hands of its top 100 wallets.
Elon Musk recently criticized the strong centralization of DOGE.
A study by Coin Metrics found that 68.1% of DOGE’s supply is concentrated in the hands of the top 100 wallets, confirming Elon Musk’s previous claims.
Investors are flocking to Bitcoin Evolution to raise its price, but data highlighted by Coin Metrics shows the supply is clearly unevenly concentrated. The top 100 portfolios thus hold 68.1% of the 128 billion DOGE in circulation.
Elon Musk, who has been making headlines in cryptocurrency for the past few months, recently touched on the situation in a tweet . On February 15, Musk said Dogecoin would receive his “full backing” if major holders sell their holdings. He added that he „would pay real dollars if they just canceled their accounts.“
From another point of view, 1% of the richest addresses hold more than 94% of the total supply . However, many of these addresses are trading platforms. Even taking this into account, over 2.7 million addresses contain at least 1 DOGE. In other words, Elon’s claim is credible.
The published data reinforce this sentiment and should inevitably hold back investors. The DOGE has since fallen by more than 20% in the few days since the tweet, although there is no way of knowing if Musk had a direct influence on the price.
Regular tweets about Dogecoin helped propel the asset to an all-time high this month, but DOGE’s unusually large supply keeps it from reaching a relatively high value. The asset was inadvertently designed, and it looks like it will continue to not be taken seriously.
Several investors, even those outside of the crypto space, have entered the market simply to try and make a profit from Dogecoin.
Musk has been unofficially named “ CEO of Dogecoin “ and referred to the asset in several tweets, often pushing the price up as a result. The crypto community takes its words to heart, but it can have a detrimental effect on cryptocurrencies as well.