Major Dogecoin Investors Continue Accumulating Despite Market Downturn

On-chain data indicates that large Dogecoin holders are accumulating assets during the current market downturn, an action experts believe may surpass mere speculative interest.

Following a low of $0.205 on Monday, Dogecoin has bounced back to $0.211, as reported by price aggregator CoinGecko. This recovery follows a significant drop of nearly 16% since its height of $0.245 on August 24, reflecting broader market trends.

Despite recent market fluctuations, on-chain metrics reveal strengthening fundamentals.

In August, the 50-day average of large Dogecoin transactions, valued at over $100,000, surged, hitting a five-month high, according to Santiment.

The total number of wallets holding 1 million to 10 million DOGE increased by 33 to 4,288 in August.

“These indicators reflect accumulation by larger players recognizing value in Dogecoin at its current price,” stated Shawn Young, chief analyst of MEXC Research, in an interview with Decrypt.

In light of existing market conditions, Young warned of a possible short-term decline as “long-term investors prepare for potential gains.”

A possible factor for this surge in activity among sizable investors could be the Trump family’s recent involvement in the acquisition of a Dogecoin mining business.

“While the Trump-family-related deal might have drawn attention, the scale of whale wallet expansion suggests that there is more at play than just reactionary speculation,” Young noted.

During Donald Trump’s presidency, the U.S. regulatory environment became more accommodating to cryptocurrency. Consequently, institutional investors are pursuing higher returns in assets such as Ethereum, Solana, Aave, and others.

While Grayscale has submitted an application for a spot Dogecoin ETF, it has yet to receive approval.

Unlike Bitcoin, Ethereum, and other cryptocurrencies, Young describes Dogecoin as a “cultural asset,” emphasizing its “capacity to recover during downturns.”