The meme-inspired cryptocurrency Dogecoin has continued to grow in the cryptocurrency market rankings. As of yesterday DOGE became the fourth-largest cryptocurrency, overtaking XRP after climbing to a coin value of $0.69, a target set by traders on social media.
Yet despite the hype surrounding Dogecoin, largely caused by the poster-boy behind the cryptocurrency, Elon Musk, public data suggests that quite a small group of people is actually using the digital ledger and as such account for the overall activity of the blockchain.
Considering the fact that the dollar value of coins across the Dogecoin blockchain exceeded $58 billion on Tuesday, the figure was 70% higher than the number of coins transferred on Bitcoin worth $34 billion and 260% higher than on Ethereum which amounted to $16 billion.
Further data analysis into the chain shows that Dogecoin’s value of coins is growing higher in comparison to the major cryptocurrencies in the world, and it has achieved this phenomenon in mere fractions of their transactions.
According to Bitinfocharts, over 1.5 million transactions were accounted for on Ether blockchain yesterday, while approximately 300,000 were counted on Bitcoin. In comparison to the recorded 76,000 on the Dogecoin blockchain, it is clear a wealth gap emerges.
When comparing the average Dogecoin transactions on Wednesday, it was recorded to be double the amount of Bitcoin, for the average Dogecoin transaction stands at $800,000, and Bitcoin stands at $420,000. Statistically, Dogecoin’s average transactions exceed Ether’s by 8,000% despite processing 5% of the transactions.
With Dogecoin holding 28% of all coins with mere 12 accounts for 67%, it is now clear that the Doge currency may not entirely be the people’s champion as the public have been led to believe.
Recently, a report was published by Galaxy Digital regarding Dogecoin’s lack of authenticity as a genuine cryptocurrency project. the report mainly targeted the fact that Dogecoin’s GitHub repository has not been operated on since 2017. Furthermore, the number of synched nodes of Dogecoin blockchain copies is only 26% of the total node. It implies that quite a few people are making an effort to maintain the network security of the blockchain.
Although the Dogehouse seems barren at this point, the fact remains the same, Dogecoin is the best performing cryptocurrency in recent times with a recorded growth of 14,000% since January. Credits and blame for the rise of Dogecoin are placed on the Chief Executive of Tesla Elon Musk, the “Dogefather” himself. Musk has consistently shown his support of Dogecoin and has posted several tweets endorsing the cryptocurrency to his 52 million followers on Twitter.
The recent peak of Dogecoin was $0.69, the figure was previously targeted by Reddit traders. The price point was initially intended as yet another joke. It was only when the price jumped up to 20 cents that the power of this movement became completely evident.
The author of the Galaxy Digital report along with the head of the firmwide research at Galaxy Digital Alex Thorn, praised Dogecoin for its lack of artifice, stating the coin’s fortune was not based on developer promises, and that Dogecoin’s only goal was to incite a reaction.
