The popularity of the comedic cryptocurrency dogecoin (DOGE) continues to surge, even two years after the onset of the COVID-19 pandemic, during which people supposedly turned to amusing digital assets to alleviate lockdown boredom.
Recent data from on-chain analytics firm IntoTheBlock reveals that the number of cryptocurrency addresses holding DOGE has surpassed 5 million for the first time. Simultaneously, active addresses on the network have more than doubled to 168,000, marking the highest figure since March 2022. Additionally, confirmed transactions on the Dogecoin blockchain have spiked to the highest level since June, registering a remarkable 1,000% increase in the past 10 days.
While these metrics highlight DOGE’s growing activity, concerns persist regarding the concentration of ownership. BitInfoCharts reports that fewer than 5,000 addresses control over 80% of DOGE’s supply, indicating that a relatively small number of traders wield considerable influence over the cryptocurrency’s price.
In terms of market capitalization, DOGE has experienced a 14% increase to nearly $11 billion this month. Typically, increased adoption and usage of a cryptocurrency contribute to a higher market value.
Dogecoin gained widespread attention in early 2021 when Elon Musk tweeted memes related to the coin, sparking the creation of other dog-themed tokens like Shiba Inu. The surge in joke cryptocurrencies during that period coincided with the COVID-19 lockdown, government stimulus checks, and unprecedented monetary easing by central banks, fostering a climate of increased risk-taking in financial markets.