According to Chainalysis’ Chief Economist Philip Gradwell in a recent market intelligence analysis, Dogecoin is currently being accepted by new investors at a rate not seen since the late-2017 bull market.
New Dogecoin holders grew their share of supply from 9% to 25% between July 2020 and August 2021, while those who had held the meme-based cryptocurrency for a longer time lowered their shares.
According to the research, “investors who purchased Doge in the last six months currently hold 25% of the supply, while investors who have held for more than two years have dropped their share of supply from 30% in July 2020 to 20% today.”
“At the moment, there are 4 million Doge holders on the blockchain. However, the majority of the supply is held by a tiny number of affluent entities,” Gradwell explained.
He emphasised that 535 entities with more than 10 million DOGE each hold 106 billion DOGE, or 82 percent of its supply.
Further breaking down the market participants that hold 10 million DOGE each, Gradwell revealed that 37 billion DOGE is owned by just 31 investors that have held their Doge for between 6 months and 2 years.
“That is over 1 billion Doge each on average,” he said.
“Major Doge exchanges, such as Robinhood, do not currently allow withdrawals, and retail customers, in general, do not frequently make on-chain withdrawals from exchanges. So either the vast majority of Doge is locked in exchanges and traded by retail, or it is concentrated in the hands of a small number of now-wealthy individuals.”