Blockchain tracker and analytics system Whale Alert recently reported that 990 million Dogecoins (DOGE), worth over $80 million at current prices, were transferred from an unknown wallet to another on January 16. The transfer consisted of 11 separate transfers, each including 90 million DOGE.
The combination of events sparked concerns over price volatility though observers suggest a big move is underway. What comes could be anything.
On-chain data revealed that nearly a billion DOGE was moved from the prominent crypto exchange Binance last week. The latest transfer has sparked controversies over the potential price movement within the Dogecoin community.
While some express concern about the potential for increased market volatility, others cautiously embrace optimism. Speculations hint at possible institutional interest or strategic maneuvers by cryptocurrency exchanges. Could this also be a sign of big price movements in DOGE?
Maybe. The token has been under pressure for years, and isn’t looking as strong as other tokens in the market.
DOGE Blasts Higher?
Meanwhile, data from Bitinfocharts revealed a remarkable surge in daily active Dogecoin addresses. On December 19th, activity reached a peak of 250,289, marking a staggering 500% increase compared to the norm. This surge underscores heightened user engagement.
Dogecoin hasn’t shown a strong reaction to these events. The memecoin is currently trading at $0.08, up 1.5% over the last 24 hours and 4.2% over the last seven days, according to data from Coingecko.
Compared to other major coins, memecoins like DOGE or SHIB took a step back last year. The two leading meme-inspired coins gained about 30%, while Solana (SOL) surged over 1000%, and Bitcoin (BTC) was up almost 160% during the same period.
Despite the tempered growth in the memecoin sector during the past year, enthusiasts and investors remain optimistic about the prospects for coins like DOGE and SHIB in 2024. Anticipation is building, with hopes pinned on the potential resurgence of these meme-inspired tokens during what some predict could be a bullish market.
Elon Musk Still Backs Dogecoin
Originally known as Internet humor, Dogecoin’s popularity comes mostly from the support of X’s CEO, Elon Musk. Elon Musk has expressed his interest and support for Dogecoin (DOGE) through various tweets and public statements.
According to him, besides the fun side, Dogecoin has faster transaction times and lower fees, making it potentially more feasible for everyday use. This aligns with Musk’s vision of cryptocurrency as a functional medium of exchange.
In a recent interview on X Space on January 11th, Musk reaffirmed his ongoing interest in Dogecoin, declaring it one of his favored cryptocurrencies. Musk disclosed that he has not sold any Dogecoin since he openly volunteered to promote the digital asset. However, he has kept other details about his crypto holdings private.
Interestingly, Musk’s latest statement did not trigger the usual price surge associated with his remarks on Dogecoin. Within 24 hours of the statement, the DOGE price saw a 6% increase. This was considered a slight surge, given the strong market reactions seen in the past.
In 2021, Musk’s statements about Dogecoin were capable of causing significant market fluctuations. His affection for Dogecoin even extended to practical integration, as Tesla, his electric car company, accepted Dogecoin as a means of payment for certain items.
Additionally, there were instances where Musk playfully altered the logo of his other venture, X, replacing the blue bird with the Shiba dog symbol associated with Dogecoin. However, these changes were quickly reversed.
Despite its initial humorous origins, Dogecoin has grown as a serious player in the crypto market, currently maintaining its position as the 10th largest cryptocurrency by market cap.
However, not all industry figures like DOGE. The coin has faced criticism from Binance CEO CZ as he expressed dissatisfaction with its longevity, highlighting its persistence beyond initial expectations.