A whale activity has been noticed on the Dogecoin network as the movement of a massive $29 million worth of Dogecoin was detected.
The said cryptocurrency assets were moved across multiple transactions and appear not to have passed through an exchange during the transaction period. Interestingly, the transaction fee costs as little as $0.11.
Data released from a Dogecoin blockchain firm shows that the funds were moved numerous times and later deposited at a previously used address which is still anonymous. The initial transactions by the whale involve the movement of almost 263 million DOGE tokens whose transaction fees are measly $0.11, the same market price which the meme cryptocurrency is currently trading.
Is The Timing A Factor?
The massive whales’ transaction of the DOGE was initially reported by Benzinga, which revealed that the movement of the funds came at a period that the crypto market was rumbling from the storm caused by the global economic instability and the war in Eastern Europe between Russia and Ukraine.
Additionally, Benzinga also added that the transaction came in a short time after the activities of DOGE whales which saw a total of 118 transactions worth over $2 million, carried out in a single day.
The crypto assets movement occurs when the market is gaining significant recovery from the market correction that has enveloped the industry for a while.
According to the observation of some analysts, the transactions began to rise following Elon Musk’s statement about his cryptocurrency stash and why he is not going to sell off his crypto portfolios, including Dogecoin, Ethereum and Bitcoin.
According to Musk, people should diversify their investments to physical products and services and not just digital assets due to the industry’s volatility. The Tesla boss also took the opportunity to ask his Twitter followers about the rising inflation following the release of the U.S. CPI metrics, which shows the rising inflation rate in the United States.
DOGE A Better Utility
According to a report by CryptoGlobe, the billionaire Tesla boss claimed that the native token of the meme-themed digital currency is better for transactions than other crypto assets like Bitcoin.
According to him, the volume of transactions carried out in the Bitcoin network is low, and the high transaction cost makes it a more suitable medium for storing value. And a store of value, investors prefer holding it, and they are mainly reluctant to sell or move it like other digital assets.
However, Musk was convinced that the meme token is better suited for transaction purposes than as a store of value, considering its flexibility and utility use.
Bitcoin, in contrast to other cryptos, has an edge. Being the first in the industry puts it on a step further up; it was even expected to rival gold as a store of value. Still, it failed to match gold’s wide acceptance rate, especially during the recent movement of funds amid the ongoing war in Eastern Europe.