Blockchain data platform Chainalysis says that the popularity of Dogecoin (DOGE) among new investors is surging and hitting levels not seen in nearly four years.
Chainalysis says in a new report that new investors are adopting the meme coin in a manner reminiscent of the crypto bull market in late 2017.
“Of course, demand and price for DOGE is largely driven by social media. But we can judge the strength of the response to this from actual activity on the blockchain. The response we see is that DOGE is currently being adopted by new investors at a level not seen since the late-2017 bull market.”
Chainlysis reveals that new investors who bought Dogecoin in the past six months now hold a quarter of the meme coin’s supply from just 9% in July of 2020.
“New investors returned again in July 2020 on the back of the TikTok trend, increasing their holdings from 9% to 17% of supply by October 2020. New investors acquired even more from January 2021, as Elon Musk and Reddit raised the profile and the price of DOGE. Investors acquiring DOGE in the last six months now hold 25% of the supply, while investors who have held for more than two years decreased their share of supply from 30% in July 2020 to 20% today.”
Although Chainalysis is seeing a rise in the adoption of Dogecoin among new investors, the blockchain data platform says that a significant percentage of DOGE’s supply remains in the hands of a few large holders.
“However, while new investors are large in numbers, likely 1 to 2 million on-chain, DOGE ownership is highly concentrated in a very small number of entities that are either retail exchanges or early investors.”