On-chain data reveals the Dogecoin whales have participated in a significant amount of net buying during the last three days.
Dogecoin Whales Have Seen Their Holdings Rise Recently
As explained by analyst Ali Martinez in a post on X, DOGE whales have just shown a large amount of accumulation. The on-chain metric of interest here is the “Supply Distribution” from the analytics firm Santiment, which keeps track of the total amount of the Dogecoin supply that the various wallet groups are holding right now.
The addresses or investors are divided into these cohorts based on the number of coins that they are carrying in their balance currently. The 1 to 10 coins group, for example, includes all addresses that own between 1 and 10 DOGE. If the Supply Distribution is applied to this group, it would measure the total amount of supply that the investors satisfying this condition as a whole are holding right now.
In the context of the current discussion, the “whales” are of interest. These holders may be defined as those carrying between 100 million and 1 billion DOGE. At the current Dogecoin exchange rate, the two ends of this range convert to around $16.1 million and $161 million, respectively.
Clearly, the whales are extremely large entities and it’s because of this scale that they are considered to be influential beings on the network. As such, the behavior of these investors can be worth tracking, and one way to do that is through the trend in their supply.
The chart below shows how the Supply Distribution has looked for the Dogecoin whales recently:
The value of the metric appears to have spiked over the last few days | Source: @ali_charts on X
As is visible in the graph, the Dogecoin whales have seen their holdings expand recently. More specifically, these humongous holders have bought 700 million DOGE (worth almost $113 million right now) over the last three days or so.
This buying has come as the cryptocurrency’s price has gone through a slight decline. It would appear that these investors believe the current prices to be potentially profitable entry points into the coin. Naturally, big money holders showing such an interest in the asset can be a bullish sign.
Following the buying spree, the total supply of this group has risen to around 30.91 billion DOGE. This means that the whales now control around 21.4% of the entire circulating supply of the memecoin.
While DOGE has seen a positive development in terms of whale buying, its competitor Shiba Inu (SHIB) hasn’t been so lucky. As Ali has pointed out in another X post, centralized exchanges have received around $103 million worth of SHIB over the past couple of weeks.
Looks like the value of the metric has been rising recently | Source: @ali_charts on X
One of the main reasons why investors deposit to these platforms is for selling-related purposes, so these large deposits could suggest Shiba Inu whales have been selling or are preparing to do so.
DOGE Price
At the time of writing, Dogecoin is floating around $0.16, down 1.5% over the last seven days.
The price of the coin has observed a small drop in recent days | Source: DOGEUSD on TradingView
Featured image from Dall-E, Glassnode.com, Santiment.net, chart from TradingView.com