- Over 80% of Dogecoin is concentrated in the wallets of 535 entities.
- Despite Dogecoin price drop, analysts predict that DOGE is known to break into a rally when least expected.
- Dogecoin loses its place as the seventh-largest cryptocurrency by market capitalization, suffering a drop of over 10% in two weeks.
Analyst expects Dogecoin to hit $1 despite the recent pullback and asks traders to be patient with the token.
Despite centralization, DOGE is gearing up for a price rally, according to crypto Twitter analysts
Cryptocurrency investors have increased their share of Dogecoin holdings from 9% in 2020 to 25% in August 2021, based on an industry report by blockchain data platform Chainalysis. The current rate of adoption is higher than previously seen levels in the bull run of 2017.
The report highlights Dogecoin’s centralization. 535 entities hold 106 billion DOGE, which is 82% of the token’s supply. Note that an entity can hold or control more than one DOGE wallet addresses simultaneously.
0.01% of entities on the DOGE network hold over 10 million DOGE each. This level of centralization impacts the circulating supply and volatility of the token since large volumes of DOGE are concentrated in few wallets.
Critiques expect the token’s centralization to impact its price negatively.
The recent correction in the Shiba-Inu-themed cryptocurrency reflects the drop in the bullish outlook of traders. However, Justin Benett, technical analyst and founder of Cryptocademy, a crypto education platform, believes that DOGE rallies when least expected.
Staying patient with the second half of my position from the 27s.
Patience is key if you aren’t already in. Either dips 0.295 or reclaim 0.31.
That’s how I’d approach it if I weren’t already in.
— Justin Bennett (@JustinBennettFX) September 5, 2021
Dogecoin’s correction can be attributed to the token being replaced by Solana. The Shiba-Inu-themed cryptocurrency is nearly $9 billion behind Solana in market capitalization, as the Ethereum-killer SOL continues its prolonged price rally.
Cryptocurrency analyst @AltcoinSherpa is waiting for DOGE to hit a price target of $1.
FXStreet analysts predict that DOGE is ready to resume its uptrend despite a minor correction along with the token’s rally to $0.40.