- Recently, 3 lumps of 100 million of Dogecoin were moved by a large “whale” investor.
- Robinhood now is the largest holder of Dogecoin, including in related digital wallets, almost 30% of value.
- Dogecoin has been making a major comeback, up over 20% from its recent trough price.
Dogecoin (DOGE-USD) is making a comeback of sorts as the cryptocurrency has been rising recently. As of Mar. 26, it was trading at 13.49 cents per DOGE token. This is up 20%-plus from its recent low of around 11 cents in mid-March.
However, let’s keep things in perspective. Year-to-date (YTD), DOGE crypto is still down quite a bit. It ended last year at 17.35 cents per DOGE token. That represents a decline YTD of 22.2%.
But, given the inherent volatility in Dogecoin’s trading, it could be made up fairly easily once the cryptocurrency market starts to turn. That may be what one particular whale was thinking when they bought a ton of DOGE tokens recently.
Recent Whale Purchases
On Mar. 25, a website called u.today reported that a crypto tracking service @DogeWhaleAlert has shared data on a massive 506.2 million Dogecoin purchase. At today’s price, that works out to more than $68.2 million.
It was done in Robinhood (NASDAQ:HOOD) and involved moving three lumps of 100,000,000 Dogecoin each. It moved the amount of DOGE from one internal Robinhood address to another. According to u.today, “each of those transfers was worth $13,679,600 and each was sent for a tiny fee of $1.37 (10 Dogecoins).”
Earlier in the month, u.today also reported that Robinhood now controls $4.9 billion worth of Dogecoin. The crypto is held by the brokerage firm in its own wallet and other internal wallets on behalf of clients.
This works out to about 27.37% of the total value of Dogecoin, estimated at $17.9 billion by Coinmarket.com. That means that Robinhood is seen as a key marketplace for the crypto. For all intents and purposes, it implies that millennials continue to control the fate of DOGE crypto. They are the key buyers of stocks and cryptos on the Robinhood platform.
Recently, Dogecoin has become increasingly accepted as a means of payment in a number of online and retail merchants. Indeed, Dogecoin is slowly gaining more acceptance as a viable payment and transfer crypto.
For one, Tesla (NASDAQ:TSLA) will soon accept Dogecoin for certain items in its online store according to a tweet by Elon Musk. The company has an instruction page on its site on how to proceed with Dogecoin crypto payments.
In addition, AMC Entertainment (NYSE:AMC) will soon start accepting Dogecoin on its website and mobile app. Other major retailers accepting Dogecoin are listed on SoFi Learn.
And recently, Dogecoin received a boost when Bitcoin of America added support for Dogecoin in their ATMs. The company is registered as a money services business with the United States Department of Treasury. It has over 1,800 ATMs across 31 states. The machines presently allow transactions in Bitcoin (BTC-USD), Litecoin (LTC-USD) and Ethereum (ETH-USD). The press release said that it had now recognized the popularity of DOGE tokens and decided it was time to include it in their ATMs.
This adds to the growing recognition that Dogecoin, the 12th largest cryptocurrency, is actually more popular as a means of payment than many realize.
What Investors Should do With Dogecoin
It is inevitable that once the crypto market returns, Dogecoin will likely be riding that wave quite well. This is the same judgment that led Bitcoin of America to begin offering DOGE crypto after they decided to offer Ethereum. They could have gone with a number of other equally popular cryptos, like Solana (SOL-USD), Cardano (ADA-USD), and even XRP (XRP-USD).
I suggest that Dogecoin can fairly quickly make up the lost ground to where it was at the end of last year. That will especially be the case if the global concerns relating to the Russian invasion of Ukraine ease.
For investors interested in crypto markets, now is a particularly good time to make an investment in DOGE-USD. It is still near its lows for the year. And it is slowly gaining in acceptance and popularity.
On the date of publication, Mark Hake did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.