On the cryptocurrency market cap rankings, Doge has continued its assault and just like on Wednesday afternoon was referred to as the Doge day. XRP have been overtaken by DOGE to become the fourth- largest cryptocurrency by implied market capitalization. The aforementioned happened, after it surged to $0.69 valuation per coin and which the aforementioned target was set by traders in social media.
All the hype surrounding Dogecoin, especially by its de facto master, Elon Musk, the cryptocurrency current media darling may not be as wholesome as it seems. It has been shown that a relatively few number of people are actually using the blockchain and those who account for an incredible large protion of its overall activity, according to publicly available data suggestion.
The Dogecoin blockchain on May 4 exceeded $58 billion, considering the dollar value of coins sent across. Also, premised on the amount transferred on Bitcoin ($34 billion) and 260% higher than on Ethereum ($16 billion), the figure of Dogecoin was at 70% higher.
Digging into on-chain data further, we see that despite Dogecoin moving a higher value of coins than the two largest cryptocurrencies in the world, it achieved this with a mere fraction of their transactions.
Over 1.4 million transactions were counted on the Ethereum blockchain yesterday, according to data from Bitinfocharts, while close to 300,000 were counted on Bitcoin. Compare this to just 76,000 recorded on the Dogecoin blockchain, and an apparent wealth gap begins to emerge.
Indeed, when looking at Dogecoin’s average transaction value on the day in question, it stood at almost double that recorded on Bitcoin. The average DOGE transaction value stood at $800,000, compared to $420,000 on BTC. Its statistics relative to Ethereum paint an even more dire picture — Dogecoin’s average transaction value exceeded Ethereum’s by 8,000%, despite processing only 5% of the number of transactions.
Combined with the long-standing reality that one single address holds 28% of all coins in existence, while just 12 account for 67% it becomes clear that Dogecoin isn’t exactly the people’s champion that interested parties would have the public believe.
A recently published report by Galaxy Digital piled on the misery regarding Dogecoin’s general lack of authenticity as a true cryptocurrency project. Titled “Dogecoin: The Most Honest Sh*tcoin”, the report highlighted the fact that Dogecoin’s Github repository (where updates to the blockchain’s code are logged by developers) hasn’t been touched since 2017. What’s more, the number of fully synced nodes (computers running copies of the Dogecoin blockchain) is just 26% of the overall node count, suggesting few people are willing to make the effort to maintain the blockchain’s network security.