Dogecoin's price recently experienced a significant drop, following a decline in Bitcoin's value. Despite this downturn, the majority of Dogecoin holders remain in profit, highlighting the resilience of the popular meme coin.
The recent dip in Dogecoin’s price to $0.1 has affected the profitability of its holders, but the majority are still seeing gains. According to data from IntoTheBlock, 73% of all Dogecoin holders are currently in profit at the current price levels. This shows that even with the price decline, Dogecoin's profitability remains strong, especially compared to other major cryptocurrencies.
To provide context to these percentages, approximately 4.65 million Dogecoin addresses are currently in profit. In contrast, 1.64 million addresses are “Out Of The Money,” meaning they are holding their DOGE at a loss. The remaining 105,260 wallets are sitting at breakeven. These numbers underscore the overall positive outlook for most Dogecoin investors, even during market fluctuations.
These current profitability levels are among the highest for Dogecoin in 2024. The last time profitability was this high was on March 29, when 88.89% of holders were in profit as the DOGE price surged above $0.2 to reach a new yearly peak.
Alongside the drop in Dogecoin’s price, there has been a significant decrease in large transaction volumes. In early August, the number of large DOGE transactions saw a sharp increase, reaching up to 1,630 transactions in a single day. However, as the month has progressed, this activity has decreased notably.
As of August 11, the number of large Dogecoin transactions fell below 1,000, dropping to 938. This reduction suggests that there is less participation from large investors in the Dogecoin market. The total volume of these large transactions has also dropped significantly, falling from $1.52 billion to $607.48 million during this period. This sharp decline in transaction volume reflects a broader trend of reduced activity among large DOGE holders.
Despite the decrease in large transactions, Dogecoin’s volatility remains high, staying above 79%. This high volatility has been evident in the market, as the price of DOGE has experienced considerable swings. If this volatility continues to rise, it could lead to further unpredictable price movements for Dogecoin.
In summary, Dogecoin’s recent price drop has impacted the profitability of its holders, but the majority remain in profit, with over 70% of addresses seeing gains. This demonstrates the relative strength of Dogecoin compared to other cryptocurrencies. However, the decline in large transaction volumes and the continued high volatility suggest that the market is still uncertain. If volatility continues to increase, DOGE could experience further price fluctuations. Despite these challenges, Dogecoin’s profitability levels are some of the highest in 2024, offering a glimpse of optimism for investors in the meme coin.
