Dogecoin high centralization levels won't prevent DOGE price from hitting $1


  • Over 80% of Dogecoin is concentrated in the wallets of 535 entities.
  • Despite Dogecoin price drop, analysts predict that DOGE is known to break into a rally when least expected.
  • Dogecoin loses its place as the seventh-largest cryptocurrency by market capitalization, suffering a drop of over 10% in two weeks.

Analyst expects Dogecoin to hit $1 despite the recent pullback and asks traders to be patient with the token. 

Despite centralization, DOGE is gearing up for a price rally, according to crypto Twitter analysts

Cryptocurrency investors have increased their share of Dogecoin holdings from 9% in 2020 to 25% in August 2021, based on an industry report by blockchain data platform Chainalysis. The current rate of adoption is higher than previously seen levels in the bull run of 2017. 

The report highlights Dogecoin's centralization. 535 entities hold 106 billion DOGE, which is 82% of the token's supply. Note that an entity can hold or control more than one DOGE wallet addresses simultaneously. 

0.01% of entities on the DOGE network hold over 10 million DOGE each. This level of centralization impacts the circulating supply and volatility of the token since large volumes of DOGE are concentrated in few wallets. 

Critiques expect the token's centralization to impact its price negatively. 

The recent correction in the Shiba-Inu-themed cryptocurrency reflects the drop in the bullish outlook of traders. However, Justin Benett, technical analyst and founder of Cryptocademy, a crypto education platform, believes that DOGE rallies when least expected. 

Dogecoin's correction can be attributed to the token being replaced by Solana. The Shiba-Inu-themed cryptocurrency is nearly $9 billion behind Solana in market capitalization, as the Ethereum-killer SOL continues its prolonged price rally. 

Cryptocurrency analyst @AltcoinSherpa is waiting for DOGE to hit a price target of $1. 

FXStreet analysts predict that DOGE is ready to resume its uptrend despite a minor correction along with the token's rally to $0.40. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu to flip Dogecoin as analysts see SHIB price rising to $0.01

Shiba Inu token emerged as the third most traded cryptocurrency in the past 24 hours after hitting a new all-time high. Experts have predicted that the memecoin will soon rank in the top 10 cryptocurrencies by market capitalization. 

More Shiba Inu News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets coil up for an explosive move

Bitcoin price has been due for a retracement after rallying for three straight weeks in October. This came on October 21, when BTC began a correction that is now holding up pretty well above a psychological barrier.

More Bitcoin News

Chainlink partners with AP while LINK price prepares for 50% advance

Chainlink price has been struggling for after May 19 crash and has stayed below a crucial barrier since then. However, LINK is turning around as it coils up to grapple with this hurdle and trigger a new upswing.

More Chainlink News

Ethereum heads toward ETH2 and Triple Halving with Altair upgrade on October 27

Following the launch of EIP-1559, the next key upgrade adds features to the beacon chain before the merge. The Altair beacon chain may be the only upgrade to the Ethereum network before transitioning from proof-of-work to proof-of-stake. Despite the drop in prices of most DeFi tokens, TVL crossed $100 billion last week.

More Ethereum News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP