According to Chainalysis, Dogecoin went from being a vulgar joke meme to becoming one of the most famous cryptocurrencies. The DOGE blockchain has reached an unprecedented amount of more than 150,000 daily active users in 2021.
According to the most recent Chainalysis report, released on August 13, the number of investors that showed interest in Dogecoin (DOGE) has risen to unbelievable levels, not experienced since the 2017 bull market.
The data gathered by the blockchain analysis firm shows that the level of participation of this platform in the market offer went from 9% in July 2020 to 25% in August 2021. This percentage is a figure that represents the increasing number of users in just one single year.
The report is the first of its class that Chainalysis releases about Dogecoin, after having announced, this week, its choice to include the cryptocurrency in the market studies it delivers to its clients, based on data gathered by the company.
According to the company, Dogecoin has gone from being a simple joke meme to becoming one of the most famous currencies out there on the market, moving large volumes in transactions, especially this year.
His calculations estimate that about 4 million dogecoin holders are on-chain (outside of exchanges and custodial services), with an average of 32,000 daily active users so far in 2021.
DOGE has become the new currency most frequently asked by our clients in the public and private sectors which shares a desire to upgrade their compliance when dealing with this new asset. The study brings back the history of Dogecoin, created in late 2013 from the meme of a Shiba Inu dog named Kabosu.
The most relevant increase in the number of investors started in 2020 but reached new highs throughout 2021. An increase that began to attract media attention in January at the hands of the billionaire owner of Tesla, Elon Musk, and users of Reddit, who helped raise the price.
The figures also show that users who purchased dogecoins in the past six months now would own 25% of the offering. While those users who have held the cryptocurrency for more than two years reduce their participation, going from 30% in July 2020 to 20% today.
The DOGE Blockchain
The Chainalysis report also clarified that despite the steady increase in the number of investors the platform still possessed a high concentration. This feature is a point that Coin Metrics analysts Elon Musk, and even Binance CEO Changpeng Zhao highlighted last February.
At least 82% of the offer of the crypto active are in hands of 535 entities (about 106,000 million of the total of 130,000 million of DOGE). Each entity owns more than 10 million dogecoins.
A minimum number of entities, according to the Chainalysis study, are made up mainly of retail exchanges or first investors that have the particularity of making few withdrawals on the blockchain.
By: Jenson Nuñez
