Thanks to Elon, Dogecoin Doubles in One Week, 62% of $DOGE Holders Now in Profit

In the past one-week period, speculation over how Elon Musk’s Twitter will make use of $DOGE has helped its price double, taking its reported market cap over $16 billion, and making it the 8th most valuable cryptocurrency.

Dogecoin was initially released on 6 December 2013, as a “fun and friendly internet currency.” It was created by Billy Markus and Jackson Palmer. It is “a decentralized, peer-to-peer digital currency” that has as its mascot “Doge”, a Shiba Inu (a Japanese breed of dog). Since then, its popularity has substantially increased, especially in the past couple of years, mostly thanks to support by billionaires Elon Musk (the CEO of Tesla and SpaceX) and Mark Cuban. In fact, in 2019, Musk said that $DOGE might be his favorite cryptocurrency.

According to data by TradingView, on Coinbase, currently (as of 12:53 p.m. on UTC on October 31), $DOGE is trading around $0.1208, which means a gain of 102.68% in the past one-week period.

Late on Thursday (27 October 2022), Dogecoin fan Elon Musk completed his purchase of Twitter.

The reason that Dogecoin is pumping so hard is that many Dogecoin fans expect Musk to introduce new use cases for $DOGE within the Twitter app and/or the mysterious upcoming “everything app” codenamed X, which he tweeted about on 4 October 2022.

It is worth remembering that on 19 June 2022, Musk tweeted that he will keep supporting Dogecoin, which was not too surprising given that he has been saying nice things on Twitter about Dogecoin for the past three years.

On 5 August 2022, the Tesla CEO had this to say about $DOGE:

“I’m mainly supporting DOGE frankly because I think DOGE has the memes and the dogs, and has a sense of humor, and doesn’t take itself too seriously...

And I do think, actually weirdly, even though DOGE was just designed to be this ridiculous joke currency, the actual transactional throughput capability of DOGE is much higher than Bitcoin. And the fact that there’s five billion DOGE created every year is actually I think good for using it as a transactional currency.”

Now, let’s look at an interesting metric called “Holders Making Money at Current Price“ from crypto analytics startup IntoTheBlock (ITB). ITB calls itself “an intelligence company that uses machine learning and statistical modeling to deliver actionable intelligence for crypto assets.”

Here is ITB’s explanation of this metric:

This metric summarizes the Global In/Out of the Money indicator. It shows what percentage of addresses holding this crypto-asset are making profits (in the money), breaking even (at the money) and losing money (out of the money) given the current market price.

For any address with a balance of tokens, ITB Identifies the average cost at which those tokens were purchased and compares it to current price. if Current Price > Average Cost, address is ‘in the Money’. If Current Price < Average Cost, address is ‘Out of the Money’.

The percentage of holders that are enjoying unrealized gains for Dogecoin is 62%:

Image Credit

Featured Image via Pixabay

Source: Read Full Article