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Dogecoin price is growing thanks to whales

May 6, 2021 Forex News

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Over the past 24 hours, the price of Dogecoin (DOGE) cryptocurrency has increased by more than 50%, and at the time of publication, it’s trading around $0,5961. Capitalization reached almost $78 billion, which allowed DOGE to enter the five largest cryptocurrencies according to the CoinMarketCap website.

Analysts attribute this rapid growth to the addition of cryptocurrency by exchanges to their listings, as well as to the growth in the activity of the so-called "whales". After the Gemini crypto exchange added options for holding and trading Dogecoin, the price of this cryptocurrency began to actively rise in price. Dogecoin transactions became available on eToro on May 3. On May 4th, Bitfinex allowed margin trading with this altcoin.

However, the biggest catalyst for the growth of the Dogecoin rate was the large holders of this cryptocurrency. In terms of transaction volumes, DOGE wallets have even bypassed Bitcoin and Ethereum networks. Over the course of a day, tokens totaling more than $58,02 billion were moved through the Dogecoin network, while during the same period in the BTC and ETH blockchains, the average amount of transactions amounted to $34,43 billion and $16,24 billion, respectively.

At the same time, the Dogecoin blockchain lags significantly behind Bitcoin and Ethereum in terms of the number of transactions per day. The DOGE blockchain had 76000 transactions, and the Ethereum network processed 1,4 million transactions.

Therefore, analysts came to the conclusion that the growth of the Dogecoin rate is associated with speculative actions. According to statistics, 12 wallets hold 67% of all coins in circulation. At the same time, one of the addresses owns 28% of DOGE tokens.

Analysts believe Dogecoin will be able to squeeze Binance Coin (BNB) in the list of the largest cryptocurrencies while maintaining the price growth dynamics.