Dogecoin Now 4th Largest Crypto Asset But Their Might Be Something Wrong - ALERT.
2021-05-05 | Eddy Morgan
It was Doge day afternoon
everywhere again, today on Wednesday as Dogecoin [DOGE] continued its assault on the cryptocurrency
market capitalization rankings. The meme coin overtook Ripple [XRP] to become the 4
th-largest
cryptocurrency by implied
market cap after climbing to a per-coin valuation of $0.69 USD - a target that was specifically set by traders on social media.
But crypto’s latest media darling
might not be as wholesome
as it seems. For all the hype surrounding Dogecoin [and its
de facto master, Elon Musk], publicly available data suggests relatively few people
are literally using the blockchain technology,
and people who do use it account for an incredibly large portion of its overall activity.
Consider that the dollar value of coins
sent across the Dogecoin blockchain earlier on Tuesday exceeded $58 Bln. That figure was 70%
over the net transferred on Bitcoin [$34 Bln] and 260%
over on Ethereum [$16 Bln].
Digging into on-chain data further, we see that despite Dogecoin moving
a better value of coins than
the two leading crypto assets
within the world, it achieved this with a mere fraction of its transactions.
Over 1.4 Mln transactions were counted on the Ethereum blockchain yesterday,
consistent with data from
Bitinfocharts, while
on the brink of 300k were counted on Bitcoin. Compare this
to only 76k recorded on the Dogecoin blockchain, and
a clear wealth gap begins to emerge.
Indeed, when
watching Dogecoin’s average transaction value on the day in question, it stood at almost double that recorded on Bitcoin [
BTC].
The typical DOGE transaction value stood at $800k, compared to $420k on BTC. Its statistics relative to Ethereum paint
a good more dire picture - Dogecoin’s average transaction value exceeded Ethereum’s by 8,000%, despite processing only 5% of
the number of transactions.
Combined with the long-standing reality that one single address holds 28% of all coins
alive, while just 12 accounts for 67%, it becomes clear that Dogecoin isn’t
precisely the people’s champion that interested parties would have
the general public believe.
A recently published report by Galaxy Digital piled on the misery regarding Dogecoin’s general lack of authenticity as
a real crypto-asset project. Referred “Dogecoin:
the foremost Honest Sh*tcoin,” the
report highlighted
the very fact that Dogecoin’s GitHub repository [where updates to the blockchain’s code are logged by developers] hasn’t been touched since 2017. What’s more,
the amount of fully synced nodes [computers running copies of the Dogecoin blockchain]
is simply 26% of
the general node count, suggesting few people are willing
to form the effort to take care of the blockchain’s network security.
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