Dogecoin Now Held at 5M Crypto Addresses, Though Concentration Remains a Concern

The adoption of joke cryptocurrency dogecoin (DOGE) continues to grow two years after the coronavirus pandemic that supposedly saw people beat lockdown boredom by gambling millions in non-serious digital assets.

The number of cryptocurrency addresses holding DOGE has topped 5 million for the first time, according to data tracked by on-chain analytics firm IntoTheBlock.

Meanwhile, the number of active addresses on the network has more than doubled to 168,000, reaching the most since March 2022, and the number of confirmed transactions on the Dogecoin blockchain has jumped to the highest since June, with the tally increasing by 1,000% in the past 10 days.

While these figures stand out, the concentration of ownership in DOGE remains an issue. According to BitInfoCharts, fewer than 5,000 addresses control more than 80% of DOGE’s supply, which means a relatively few traders have control over the cryptocurrency’s price.

DOGE’s market capitalization has risen 14% to almost $11 billion this month. Greater adoption and usage of cryptocurrency often translate into higher market value.

Dogecoin gained notoriety in early 2021 after Elon Musk tweeted memes based on the coin, inspiring the creation of other dog-themed tokens like Shiba Inu. Joke cryptocurrencies in general surged during that period as the coronavirus lockdown, stimulus cheques from governments and unprecedented monetary easing by central banks spurred risk-taking across financial markets.