Elon Musk-Backed Dogecoin Has A Dark Side: Single Wallet Holds 30% Supply

KEY POINTS

A single Dogecoin wallet holds more than 30% of the DOGE supply
Top 10 wallets hold more than 50% of the DOGE supply
One of the top wallets belongs to a burn address of failed project Dogeparty (XDP)

Dogecoin (DOGE) investors need to be aware of the network's centralized structure as wallet analysis shows that the top 10 wallets are holding almost 51% supply of DOGE tokens.

According to the data from Bitinfocharts, there is a wallet that holds DOGE tokens worth $2.7 billion, accounting for 30.38% of the entire circulating supply of Dogecoin tokens. As per CoinMarketCap data, the circulating supply of DOGE is around 132.67 billion DOGE and of these, 41.13 billion DOGE tokens are held by the biggest whale. This whale address is based on Robinhood's crypto wallet.

However, among the top 10 wallets is the burn wallet of DogeParty (XDP), a failed meme coin project. At least 1.85 billion Dogecoins were voluntarily burned (removed forever) by people to get a new coin called DogeParty (XDP) which accounts for 1.37% of the entire supply. These DOGE tokens will remain inaccessible forever.

Dogecoin is also ranked as the 10th biggest cryptocurrency in the market. The dog meme-based cryptocurrency was created as a joke by software programmers Jackson Palmer and Billy Markus in 2013 and was priced at $0.0056 on Jan. 1, 2021. Thereafter, the meme coin went on to make an all-time high of $0.7376 in May 2021.

The price of 1 DOGE as of 10:12 p.m. ET Sunday was $0.06558 which is almost 91% low than its all-time high. There are many companies that accept the meme coin as payment and the cryptocurrency maintains a strong presence with support from Elon Musk, the CEO of Tesla and SpaceX.

Recently, Musk's Boring Company, valued at $5.7 billion after a funding round, revealed a method for customers of the Loop, its Las Vegas transit system, to pay for their rides with Dogecoin (DOGE).

Musk's continued backing of DOGE has been one of the primary reasons why the meme coin remains in the top 10 cryptocurrencies in the crypto industry. He confirmed that Tesla owns Dogecoin while recently allowing users to buy Tesla merchandise using DOGE.