$DOGE: Crypto Analytics Firm Explains Why Dogecoin Is ‘Impressive’
Blockchain analytics startup IntoTheBlock (ITB) recently took a closer look at the price performance of the popular meme-based altcoin Dogecoin ($DOGE) over the past several years.
Dogecoin ($DOGE) was released on December 6, 2013, as a “fun and friendly internet currency.” It was created by Billy Markus and Jackson Palmer. Dogecoin is “a decentralized, peer-to-peer digital currency” that has as its mascot “Doge,” a Shiba Inu (a Japanese breed of dog).
Here is how Binance Academy describes Dogecoin:
“Dogecoin (DOGE) is an open-source, peer-to-peer cryptocurrency stemming from a fork of the Litecoin codebase. As the name suggests, it’s largely based on the Doge meme that took the Internet by storm in 2013. The original image depicts a dog of the Shiba Inu breed, whose inner monolog is displayed in comic sans font…
“Despite being an asset whose existence revolves around an Internet meme, Dogecoin has developed a dedicated community of users. Many years later, Dogecoin managed to remain among one of the top cryptocurrencies by market cap.“
Since its launch, Dogecoin’s popularity has substantially increased, especially in the past 3-4 years, mostly thanks to support from billionaires Elon Musk and Mark Cuban (the majority owner of the professional basketball team Dallas Mavericks, as well as one of the “sharks” on the highly popular reality show “Shark Tank,” to the point that it is currently the ninth most valuable cryptocurrency, with a market cap of over $9.83 billion (as of 7:50 a.m. UTC on 6 March 2023). In fact, in 2019, Musk said that $DOGE might be his favorite cryptocurrency.
Anyway, last week, ITB commented on what one of their on-chain signals — the “In/Out of the Money” indicator — is saying about $DOGE. This metric “shows what percentage of addresses holding this crypto-asset are making profits (in the money), breaking even (at the money), and losing money (out of the money) given the current market price.”
Here is ITB explaining further how this metric works:
“For any address with a balance of tokens, ITB Identifies the average cost at which those tokens were purchased and compares it to the current price. If Current Price > Average Cost, the address is ‘in the Money.’ If Current Price < Average Cost, the address is ‘Out of the Money“
ITB told its 44.5K Twitter followers that the percentage of $DOGE holders who are in profit “rarely” falls below 40% and that the last time this happened was in 2015, which they found “impressive” since “other altcoins often suffer 90%+ losses in bear markets.”
Currently, 56% of $DOGE holders are in the money:
According to data from TradingView, $DOGE is currently trading around $0.0739, down 2.05% in the past 24-hour period but up 5.72% in the year-to-date period.
Featured Image via Unsplash
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