Dogecoin (DOGE) continued to rise on Wednesday, May 5th, climbing the list of the largest cryptocurrencies in terms of market capitalization. DOGE, seeing $ 0.69, moved up to fourth place on the list, displacing XRP.
However, DOGE, one of the favorite crypto currencies of the crypto money industry, may not be as healthy as it seems. Public data reveals that very few people actually use the DOGE blockchain and make up the vast majority of the transaction volume.
The value of cryptocurrencies transferred on the Dogecoin blockchain on Tuesday exceeds $ 58 billion. This number exceeds the amount transferred on the Bitcoin blockchain ($ 34 billion) by 70 percent, and the amount transferred on Ethereum ($ 16 billion) by 260 percent.
On-chain data shows that although the amount transferred on the Dogecoin blockchain is much greater compared to the two largest cryptocurrencies, this amount was transferred in very few transactions.
According to Bitinfocharts data, more than 1.4 million transactions were made on the Ethereum blockchain on Tuesday and close to 300 thousand transactions on the Bitcoin blockchain. The number of transactions made on the Dogecoin blockchain on the same day, on the other hand, is only 76 thousand, indicating that the wealth distribution inequality has started to appear in the DOGE market.
Indeed, it was seen that the average value of Dogecoin transactions made on the aforementioned day was 800 thousand dollars. The average value of transactions made on the Bitcoin network on the same day was 420 thousand dollars, almost half. When compared to Ethereum, Dogecoin’s average transaction value presents a more striking picture. Although only 5 percent of transactions on the Ethereum blockchain network are processed, the average value of Dogecoin transactions exceeds 8,000 percent on Ethereum.
It has long been known that a single Dogecoin address holds 28 percent of all DOGEs in circulation and 67 percent of 12 addresses. All these facts show that Dogecoin may not be that suitable for investors.
Still, Dogecoin remains the best performing asset in the cryptocurrency industry. Crypto money has gained 14 thousand percent since the beginning of the year it started under 1 cent.
On the other hand, it should not be forgotten that $ 0.69, which is the peak level of Dogecoin, is the price target set by Reddit investors who want to artificially raise the price of crypto money. The first goal was to reach this level on April 20, which was declared “Dogecoin Day” by the community, but the coin was only able to reach $ 0.42 that day. Investors’ ultimate goal for Dogecoin is $ 1.