The popular meme coin, Dogecoin, has welcomed new holders into its ecosystem within the past three months. As per data from CoinMarketCap, the number of Doge holders has increased by about 2% from its July 24th number.
While the coin has enjoyed increased investors, it hasn’t reflected in its price movement. It seems most investors are dormant whales banking on future bullish news, such as Twitter’s acquisition or other blockchain upgrades.
Dogecoin Investors Spike: The Numbers
Dogecoin has enjoyed massive growth in the past. What started as a meme on Twitter grew to become a top 10 cryptocurrency, according to CoinMarketCap. Despite its huge popularity, it joined the rest of the market to nosedive during the recent crypto crash.
Dogecoin is still over 90% below its all-time high. However, it has seen a decent increase in the number of holders in the past three months. Dogecoin’s total holder count as of October 23 was 4,456,459, up from 4,365,551 on July 24 (a 2% increase). CoinMarketCap statistics show that the tenth-ranked cryptocurrency by market cap gained over 889,900 holdings in three months.
However, the price of Dogecoin has not responded to the actions of its holders. As of this writing, the asset was trading for $0.059, down 16.1% in the past three months.
Why More People Are Holding Doge
There are several reasons that explain the disconnect between the rise in the number of DOGE holders and the price of the cryptocurrency. One major reason is the widespread expectation that the meme coin’s value will improve soon. The whales’ continuing accumulation of DOGE and network activities to increase its utility indicate that DOGE will rally again.
Elon Musk, CEO of Tesla, has also been in the news recently for his proposed takeover of social media giant Twitter. This news has coincided with a surge in holdings. It’s worth mentioning that Musk and the Dogecoin community have had a positive history together. Therefore, the prospect of this purchase going through might affect the value of DOGE.
Musk has backed DOGE and is collaborating with the cryptocurrency’s key developers to improve the token’s potential. His prior remarks on Dogecoin also caused the token’s price to skyrocket. On the other hand, if the transaction is successful, there is a potential that Dogecoin may be included as a payment option on the social networking platform. This would be a bullish development for cryptocurrency.
DOGE’s price currently hovers around $0.06. | Source: DOGEUSD price chart from TradingView.com
Doge Community Is Bullish About Its Price
CoinMarketCap’s cryptocurrency community anticipates the dog meme token will average $0.06748 this October. This estimate was calculated using the ‘Price Estimate tool. The tool lets participants speculate on the future value of various cryptocurrencies based on their votes. The total number of votes in this forecast was 1,043.
The anticipated Dogecoin price on October 31, 2022, is $0.0716. It is +19.71% more than its current $0.05981 value at the time of writing.
Featured image from Pixabay and chart from TradingView.com
