Chainalysis Report: 37 Billion Dogecoin Is Owned By Only 31 Investors

What Happened: On-chain analysis from blockchain data firm Chainalysis revealed that newer Dogecoin DOGE/USD investors had increased their skin in the game.

In a recent market intel report, Chainalysis’s Chief Economist Philip Gradwell said Dogecoin is currently being adopted by new investors at a level not seen since the late-2017 bull market.

Between July 2020 and August 2021, new Dogecoin holders increased their share of supply from 9% to 25%, while those who held the meme-based cryptocurrency for a longer period reduced their holdings.

“Investors acquiring Doge in the last six months now hold 25% of the supply, while investors who have held for more than two years decreased their share of supply from 30% in July 2020 to 20% today,” read the report.

Why It Matters: Chainalysis attributed the coin’s surge in popularity this year to TikTok trends, the Reddit community, and attention from Tesla Inc TSLA CEO Elon Musk.

“Currently there are 4 million on-chain holders of Doge. But most of the supply is held by a small number of wealthy entities,” stated Gradwell.

He highlighted that 106 billion DOGE, or 82% of its supply, is held by 535 entities that hold more than 10 million DOGE each.

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.”

Price Action: At press time, Dogecoin was trading at $0.3366 after gaining 9.49% over the past 24-hours and 32% over the past seven days.

See also: Is Dogecoin a Good Investment?