It was Doge day afternoon all over again on Wednesday as Dogecoin (DOGE) continued its assault on the cryptocurrency market capitalization rankings. The meme coin overtook XRP to become the fourth-largest cryptocurrency by implied market capitalization after climbing to an All-Time High of $0.69 per-coin valuation — a target that was specifically set by traders on social media.
But cryptocurrency’s latest media darling may not be as wholesome as it seems. For all the hype surrounding Dogecoin (and its de facto master, Elon Musk), publicly available data suggests relatively few people are actually using the blockchain and those who do use its account for an incredibly large portion of its overall activity.
Consider that the dollar value of coins sent across the Dogecoin blockchain on Tuesday exceeded $58 billion. That figure was 70 percent higher than the amount transferred on Bitcoin ($34 billion) and 260 percent higher than on Ethereum ($16 billion).
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 (BTC). 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 percent, despite processing only 5 percent of the number of transactions.
Combined with the long-standing reality that one single address holds 28 percent of all coins in existence, while just 12 accounts for 67 percent, 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 percent of the overall node count, suggesting few people are willing to make the effort to maintain the blockchain’s network security.
But even if the Dogehouse seems like a ghost town, the glaring reality remains that Dogecoin is the best performing digital asset in the cryptocurrency space. The coin has recorded 14,000 percent growth since Jan. 1, when it was priced at a fraction of a cent.
Both credit and blame for Doge’s seemingly irrational ascent have been placed on the “Dogefather” himself, Elon Musk, who has taken great pleasure in posting Doge memes to his 52 million followers on Twitter throughout much of 2021.
However, it should also be noted that the coin’s recent peak of $0.69 is the same price target set by Reddit traders intent on artificially pumping DOGE’s valuation. The price point was originally intended to be reached on April 20 — a joke on top of a joke on 4/20 day. Dogecoin only reached a price of $0.420 at the time (boom), but now, a little over two weeks later, it has finally achieved its jocular goals. The ultimate price point being pursued by traders is $1.
If more evidence is needed that markets are not always rational, look no further than this year’s GameStop pump, where the share price of a near-dead brand increased by over 9,000 percent.
“Dogecoin has always been a joke, and the joke keeps getting funnier,” stated the Galaxy Digital report. Author of the report and head of firmwide research at Galaxy Digital Alex Thorn did praise Dogecoin for its lack of pretense, noting that the coin’s fortunes weren’t tied to foundation announcements or developer promises and that its only goal was to elicit a reaction.
“Dogecoin’s longevity is ensured so long as one truism remains: people love a good joke,” Thorn ended.
Funds Flowing Into Crypto Space Hits $1.5 Billion Last Week
New money flowing into cryptocurrency space rose to a record-high of $1.47 billion last week, according to a report by CoinShares.
The huge capital inflow was after the U.S Securities and Exchange Commission approved Bitcoin ETF investing in futures and the broad-based rally that followed the announcement. Year-to-date, investors have dumped a total of $8 billion into crypto funds.
Bitcoin, the world’s most dominant cryptocurrency, rose to an all-time high of $66,974 per coin last week.
Most of the inflows go into Bitcoin-focused funds, Bitcoin focused funds accounted for 99 percent of all the $1.47 billion inflows recorded last, up from the $70 million Bitcoin exposed funds attracted in the previous week.
CoinShares attributed Bitcoin’s new attraction to the two bitcoin futures listed after SEC approval.
“This is a direct result of the U.S. Securities and Exchange Commission (SEC) allowing a bitcoin ETF investing in futures and the consequent listing of two bitcoin investment products,” the report noted.
SEC had approved the first Bitcoin futures ETF, ProShares Bitcoin Strategy ETF, on October 15, 2021. It was the approval that drove Bitcoin back to $60,000 a coin before it set a new all-time record.
However, while Ether (ETH), the native cryptocurrency of the Ethereum blockchain and the world’s second-largest cryptocurrency by market value, also reached an all-time high at $4,361 a coin last week, funds exposed to Ether saw outflows for a third consecutive week. Ether outflows stood at $1.4 million last, stated the report.
“This is minor profit-taking as the price closes in on all-time highs.”
Altcoins like Solana (SOL) also saw inflows at $8.1 million, Cardano (ADA) and Binance coin (BNB) attracted inflows estimated at $5.3 million and $1.8 million, respectively.
President Buhari Says E-Naira Could Increase Nigeria’s GDP By $29 Billion
President Muhammadu Buhari, in a statement signed by the Presidential spokesperson, Mr. Femi Adesina and made available to the media at the unveiling of Nigeria’s Central Bank Digital Currency, the E-Naira, said that the new digital currency has the potential to increase Nigeria’s GDP by $29 billion over the next 10 years.
The President reiterated that the launch of the E-Naira makes Nigeria the first country in Africa and one of the first few countries in the world to launch a digital currency. He further said he expects the currency to enable the government to send direct payments to citizens eligible for government welfare programs as well as foster cross-border trade and assist in moving many more people and businesses from the informal sector into the formal sector, therefore, increasing the tax base of the country.
The President then congratulated the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, his deputies, and the entire team of staff who worked tirelessly to make the launch of the currency a reality.
Meanwhile, earlier in the day, the Buhari Media Organisation (BMO), the approved body for operating digital communications of the Presidency, said that Nigeria will surpass the International Monetary Fund’s (IMF) projections of 2.6 percent economic growth in 2021 and 2.7 percent growth in 2022. The Group believes under President Buhari, the non-oil sector is progressing and this can be seen in the sector’s contribution to the GDP of Nigeria.
Mr. Niyi Akinsiju, the chairman of the organization, and Mr. Cassidy Madueke said this in a statement in Abuja. The full statement given by the organization said ” This is not the first time that the IMF is making such projections, but Nigeria never ceases to disappoint it by recording higher economic growth. In 2019, IMF projected a 2.1 percent economic growth for Nigeria, but against its prediction, Nigeria recorded real growth of 2.27 percent in Gross Domestic Product (GDP).
The statement further said “In a like manner in 2021, the IMF also projected that Nigeria’s economy would fall by 5.4 percent due to the COVID-19 pandemic. It later reversed its projection to 4.3 percent, but contrary to that, Nigeria recorded 1.8 percent.
eNaira: Buhari, Emefiele Launch eNaira at State House Abuja
President Muhammadu Buhari and the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele on Monday, October 25, 2021 officially launched eNaira, Nigeria’s Central Bank Digital Currency (CBDC) in state house Abuja.
Nigeria is now one of the few countries to have launched digital currency ahead of nations like the United States, United Kingdom, etc.
The CBN believed eNaira will help plug loopholes in the financial system, curb illicit financial flows, strengthen security, improve data collection and monitoring.
Speaking on why he approved CBN’s decision to launch a digital currency, the president explained that his approval was “underpinned by the fact that the CBN has been a leading innovator in the form of money they produce, and in the payment services they deploy for efficient transactions.”
“They have invested heavily in creating a Payment System that is ranked in the top ten in the world and certainly the best in Africa,” the president said at the event in Abuja.
“This payment system now provides high‐value and time‐critical payment services to financial institutions, and ultimately serves as the backbone for every electronic payment in Nigeria.”
President Buhari further said, “estimate suggests the adoption of new CBN digital currency is estimated to increase Nigeria’s GDP by $29 billion over the next 10 years.
“We have become the first country in Africa and one of the first in the world to introduce a digital currency to our citizens.”
Africa’s largest economy has now launched two mobile applications for eNaira – eNaira speed wallet and eNaira merchant wallet – on Google playstore and Apple store to facilitate adoption and usage.
These applications tell eNaira potential users to“Get Ready With Your Accurate BVN Data For Your Hitch-Free Enrolment.
“To sign-up on the eNaira speed wallet, you would be required to input the following details exactly as captured during your BVN enrollment.
“First Name, Last Name, Date of Birth, State of Origin, and Email.
“Your Banks are waiting to assist you in validating and updating your BVN details to ensure seamless enrolment to the eNaira Platform.”
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