• After reaching nearly $500 million in volume, Dogecoin accumulation increased by 6.8 percent

  • According to IntoTheBlock, the accumulation rate of Dogecoin increases by 6.8 percent when the concentration of coins in whale-tier wallets increases. The increase in the accumulation rate is most likely due to the huge discount at which Dogecoin trades.

    According to IntoTheBlock data, the asset has become less profitable in comparison to previous cycles. At the time of publication, just 54% of all traders or investors were earning from holding DOGE, whereas the same indicator showed at least 70% only one month prior.

    The abrupt decline in profitability is most likely due to a concentration of “buy” orders placed by traders following the first Dogecoin price rise in April 2021. DOGE achieved a high of $0.74 during the run and then dropped.

    Why are whales accumulating?

    The primary cause for the enhanced purchasing power is most likely related to the cryptocurrency’s enormous discount. Dogecoin, like the rest of the market, has lost more than half of its value, allowing whales to accumulate in a steady, progressive, and inexpensive manner.

    Typically, an increase in the number of assets concentrated in whale wallets is regarded as a positive trend since whales take profits only at the top or near the peak of a bullish rally on various coins.

    When retail traders dominate the holder composition, assets experience increased selling pressure, causing them to fall deeper instead of consolidating and recovering. The same scenario happened with DOGE after the majority of whales quit the market in May 2021 and redistributed their assets to private traders, causing the asset to fall into a long-term decline.

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