Latest reports indicate a dramatic shift in the Dogecoin investor profile, with fewer people holding cryptocurrency worth $1 million or more.
The change takes place as the overall cryptocurrency market is experiencing corrections and price swings, impacting the net worth of most digital asset holders.
The changing value of Dogecoin itself appears to be the foremost reason contributing to this decrease in its millionaire numbers.
Impact Of Dogecoin Price Fluctuations
The price swings of Dogecoin, popular for its meme-based genesis and significant price fluctuation, have had a direct impact on the composition of its high-net-worth holders.
Certain investors whose portfolios were once valued at over a million dollars have lost asset value due to DOGE’s negative effect. This correction in the market is part of a larger trend of fluctuation in various cryptocurrencies, such as popular assets Ethereum and Bitcoin.
Investors tend to react to market volatility with sell-offs, which in turn can create more price declines and then influence the number of high-value holders.
Source: Bitinfocharts
Increased Holdings Among Largest Investors
Interestingly, as the ranks of Dogecoin millionaires have thinned, an opposite trend can be seen among the largest holders of the currency, commonly called whales.
Latest statistics from blockchain analytics tool BItinfocharts indicate that these large investors have been aggressively adding to their Dogecoin positions.
In particular, the number of addresses holding between 1 million and 10 million DOGE tokens has risen over the last year.
DOGE market cap currently at $25 billion. Chart: TradingView.com
This whale buildup could suggest a longer-term bullish view of the future potential for Dogecoin, or it might be positioning itself in front of expected changes in the market.
These major investors usually possess the means and expertise to withstand market volatility and possibly capitalize on cheaper prices.
Establishing The Million-Dollar Threshold
In order to provide context, the reports specify how much Dogecoin is needed to reach millionaire status at a given price level. Since Dogecoin is now worth approximately $0.17, one would have to hold a minimum of 5.8 million DOGE coins to reach assets of $1 million.
Dogecoin addresses with $1.7 million or more at the current price have fallen to about 867, according to Bitinfocharts data. Those with between 10 million DOGE ($1.7 million) and 100 million DOGE ($17 million) make up the largest portion of this amount, 755.
Addresses with balances of $17 million to $170 million, or between 100 million and 1 billion DOGE, add up to 97. There are 14 people who own between $170 million and $1.7 billion, or 1 billion DOGE. Remarkably, just one address has between 10 billion and 100 billion DOGE.
Massive Volume
This shows the sheer volume of Dogecoin that must be held in order to reach this monetary goal and emphasizes how price fluctuation impacts the number of individuals who can become so wealthy.
The increasing build-up of big players in the 1 million to 10 million DOGE segment indicates a remarkable build-up of wealth in this particular cryptocurrency despite a decline in the overall number of millionaires.
This asymmetrical trend among small and large investors is a thought-provoking indicator of the current position of the Dogecoin market and the dissimilar strategies of different groups of investors.
They will keep watching these trends to see what they can learn about Dogecoin’s future and the composition of its investor base.
Featured image from Gemini Imagen, chart from TradingView
