With renewed interest of whales, will Dogecoin get its glory back?

New Delhi: Dogecoin has been witnessing a sharp rise and renewed interest in the whale activities, the data from the analytics firm IntoTheBlock suggest.

The largest hodlers are called whales, who hold over $1 million worth of crypto in their wallets. Holding is an industry term for users who hold large amounts of crypto without selling them, in hopes of future profits.

Thanks to the resurgence of interest in the interest of Whales, the largest memes token has been able to make its way back in the top-10 digital currencies earlier this week.

Whales are large holders of a crypto asset and their activities sometimes indicate how the wider retail market may behave in near future, said Vikram Subburaj-CEO, Giottus Crypto Exchange.

“Most of these transactions indicate a bias for acquiring Dogecoin rather than selling it,” he added. Dogecoin is currently commanding a market-cap little less than $19 billion.

However, the jump of Dogecoin in the rankings table can also be attributed to the 15 per cent fall in the Avalanche prices, which is not holding at the 12th position in the table.

The number of transactions with a value of at least $100,000 rose to 2,440 on Monday, the highest since January 14, 2022, the firm reported. “The indicator acts as a proxy to the number of whales’ and institutional players’ transactions.”

Dogecoin has been in buzz among the investors ever since the announcement of takeover of Twitter by Elon Musk, who is also known as the ‘DogeFather’ by the cult and avid follower of the given memecurrency.

Dogecoin is about 80 per cent below its all time peak of $0.6848 it hit about a year ago. The deflationary tokens have 132.67 billion DOGE tokens in supply for now, with no capping.

Edul Patel, Co-Founder and CEO, Mudrex said that the cryptocurrency continued the winning streak after Elon Musk’s acquisition of Twitter for $44 billion. “Dogecoin enthusiasts are buying it, expecting it to play a significant role on Twitter.”

Echoing the similar tone, Subburaj said that Elon is a strong proponent of Dogecoin as a transactional cryptocurrency and whales believe that Twitter will, in future, make the memetoken a default asset for transactions in the platform.”

It is a no hidden fact that Elon Musk is an outspoken proponent of cryptocurrencies and a longtime dogecoin fan. In an interview with Time magazine last year, Musk said dogecoin is better suited for transactions than bitcoin.

Dogecoin is getting back its old glory with Elon Musk and giant whales backing it up on one side,” said Patel from Mudrex.

“Along with it, RadioDoge protocol created by Dogecoin Foundation, aims to use low-cost radio technology aligning with Starlink satellite, allowing to perform transactions without using the internet on the other side,” added.

Market experts suggest that the increase in whale activity is hinting towards a strong potential rise in the prices of the Dogecoin, but its dependence on Bitcoin’s movement and investors interest in the riskier assets is quite high.

Dogecoins remains a highly volatile asset that is linked to activities done by influencers and whales, cautions Subburaj. “Investors have to understand the higher risks involved as compared to Bitcoin before investing further in the crypto.”

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