With the meme-inspired cryptocurrency Dogecoin ($DOGE) trading around $0.14, far below its $0.73 all-time high seen in May of 2021, nearly 60% of DOGE holders are currently “in the money.”
According to data from cryptocurrency analytics startup IntoTheBlock, 58% of Dogecoin holders are currently “in the money” even with the price of DOGE so far below its all-time high. The firm identifies the average cost at which tokens were purchased for every wallet with a DOGE balance to determine how holders are doing.
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IntoTheBlock’s data further shows that 36% of DOGE holders are “out of the money,” while 6% are currently breaking even on their investments. Notably, 56% of the meme-inspired cryptocurrency’s holders have been storing their crypto for over a year, while 40% have been HODLing between one and 12 months.
The platform’s data, it’s worth noting, only represents address on-chain and as such does not indicate how investors who custody their funds on cryptocurrency exchanges are doing. When a large percentage of a cryptocurrency’s investors are “in the money” it implies an asset is overbought and may be due for a correction.
As CryptoGlobe has been reporting, DOGE’s adoption has been growing over time. Last month, leading U.S. movie theater chain AMC added two meme-inspired cryptocurrencies, Shiba Inu and Dogecoin as payment methods, a week before they were scheduled to go live.
Earlier this month, Tesla and SpaceX CEO Elon Musk offered some suggestions on how Twitter’s first-ever subscription offering, Twitter Blue, could be improved. One of his suggestions included allowing the subscription fee to be paid in DOGE.
Musk is notably an avid Dogecoin proponent, who has hinted his space exploration company could start accepting payments in the meme-inspired cryptocurrency.
Tesla has started accepting DOGE payments on its website, allowing specific products such as its “cyberwhistle,” its “Giga Texas” belt buckle” and its “cyberquad” four-wheeler for kids to be bought with it. These items are all priced in DOGE, ranging from 12,020 coins for the four-wheeler to 300 DOGE for the cyberwhistle.
On Tesla’s Dogecoin support page, the firm notes that customers who send the wrong amount of DOGE to its address may see their orders get canceled, and adds that if an order is overpaid in the cryptocurrency the “overpayment amount will not be refunded to the original form of payment.”
Notably, Musk and Billy Markus have earlier this year pushed McDonald’s to accept DOGE as a payment method, but the fast-food giant ultimately did not move forward with such an integration.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured image via Unsplash
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