Dogecoin whales are on the move once again as they have been caught buying hundreds of millions of dollars in DOGE. But what’s interesting about the recent trend of whales accumulating DOGE is the mystery behind these addresses. Because these are all new addresses.
Dogecoin Whale Buying Continues
According to Whale Alert, an on-chain data tracking platform for large-scale cryptocurrency transactions, there have been a number of interesting transactions performed by new Dogecoin whales. The first transaction was performed on February 16th by a wallet that received 515 million DOGE, worth approximately $44 million at the time. This wallet had no transactions before and was a completely new wallet.
A few days after the wallet received the coins, they sent over 512 million DOGE worth $43 million to another new wallet. Like the first, this wallet has never been transacted before and is a completely new way to do it.
Two days later, on Thursday February 22nd, the second wallet sent 400 million DOGE, worth $34.11 million at the time of the transfer, to another new wallet. This transaction, reported by Whale Alert, is the latest in a series of whale transactions involving new Dogecoin wallets over the past week.
🚨 🚨 400,000,000 #viceroy Transferred (34,115,063 USD) from an unknown wallet to a new, unknown wallet https://t.co/MKEPCBinOi
— Whale Alert (@whale_alert) February 22, 2024
A possible explanation for this movement could be over-the-counter (OTC) trading, where whales buy coins directly from owners to avoid influencing the market with their activities. However, it could also be the same owner of all wallets diversifying their large holdings ahead of a bull market.
DOGE price drops to $0.084 | Source: DOGEUSD On Tradingview.com
Possible impact on DOGE price
If either of the two scenarios described above are the cause of these transactions, the price will not be affected. It has at least a negative impact. Buying OTC will take the selling pressure off the Dogecoin price and help maintain its market value.
On the other hand, it is also optimistic for a single investor to spread his holdings across multiple wallets. The fact that none of these coins have found their way to a centralized exchange so far shows that whoever is behind the deal has no intention of selling.
It also tracks the general market trend of DOGE price remaining above $0.084. However, Dogecoin’s poor performance caught up with it as it fell out of the top 10 cryptocurrencies by market capitalization. Justin Sun’s blockchain, Tron, and its native token, TRX, are currently the 10th largest cryptocurrency project, with a market capitalization of $12.3 million at the time of this writing.