Dogecoin, the world’s most capitalized meme coin with a market capitalization of $18.3 billion, according to on-chain analytics firm IntoTheBlock, is seeing renewed activity from whales, a term used to describe ‘big money’ investors of the meme-focused cryptocurrency.
The number of transactions with a value of at least $100,000 rose to 2,440 on Monday, the highest since Jan. 14. IntoTheBlock’s explainer stated, “The number of large transactions is a relevant metric tracking the count of transactions greater than $100,000. Since this sum of money is not available to the average retail trader on-chain, the indicator acts as a proxy to the number of whales’ and institutional players’ transactions.”
The interest in the memecoin comes after Twitter’s board of directors agreed to sell the company to Elon Musk, the world’s richest man. On Monday, the announcement of the acquisition saw the price of Dogecoin rally by over 30%.
What you should know
- Analysis of Google search data reveals that online searches for ‘Buy Dogecoin’ exploded 392% worldwide on the 25th of April, the same day the announcement of the agreement was made, which showed that the firm would be acquired by Tesla’s CEO for $44 billion at $54.20 a share.
- Dogecoin’s massive jump in price on Monday represented the biggest single-day gain since October 28, 2021, according to data from TradingView.
- The reason we are seeing a strong rally in Dogecoin is as a result of Elon, teasing Dogecoin as a means of payment on Twitter in a tweet. He proposed dogecoin as one of the payment options for Twitter Blue, the site’s subscription service with premium features.
- Asides from Dogecoin, we are seeing significant rallies in the meme coin sector of the cryptocurrency space, which looks to be a cheer from Dogecoin’s counterpart for the successful acquisition of Twitter.
- The total meme coin market capitalization now stands at approximately $31.7 billion, up 10% for the week, as of the time of this writing.
- Trading volume of the meme coin sector has also rallied. The volume currently stands at $8.4 billion, currently up over 400% at the time of this writing.
- Tesla, one of Elon’s many companies, already accepts Dogecoin as a means of payment on its online merchandise store. Musk has also previously lent support to dogecoin development and adoption, such as a May 2021 tweet that saw Musk state he was working with dogecoin developers to improve system efficiency.
Crypto derivatives firm FRNT Financials’ daily newsletter stated, “Musk’s acquisition of Twitter, which has played a key role in crypto discourse and has adopted the asset class, has spurred speculation about possible implications.
“For example, a number of DOGE-related profiles have circulated an exchange on Twitter where Musk responded ‘that would be [sick]’ to the suggestion of replacing the social media platform’s blue bird logo ‘to a doge.” The newsletter further stated, “Speculation about any role DOGE may play at a Musk-owned Twitter has also been spurred by some media outlets.”