On-chain metrics show large Dogecoin holders are accumulating the asset during the recent market correction, a move experts say could be driven by more than headline-fueled speculation.
Dogecoin has rebounded from Monday’s low of $0.205 and is currently trading at $0.211, according to price aggregator CoinGecko. The recovery comes after the dog-based meme coin dropped nearly 16% from its August 24 high of $0.245, aligning with the broader crypto market correction.
Despite the recent market turmoi, on-chain metrics showcase improving fundamentals.
The 50-day average of large Dogecoin transfers, valued at $100,000 or higher, has seen a notable increase in August, reaching its highest level in five months, according to Santiment.
The total number of wallets holding 1 million to 10 million DOGE also grew by 33 to 4,288 in August.
“These indicators signal the accumulation from larger players who spot value in Dogecoin at its current levels,” Shawn Young, chief analyst of MEXC Research, told Decrypt.
Considering the current market conditions, Young cautioned of a potential short-term pullback amid “long-run investors positioning for potential upside.”
One of the reasons for this heightened activity from large investors could be the involvement of Trump’s family in acquiring a Dogecoin mining company last week.
“The Trump-family-linked deal may have helped spark attention, but the scale of whale wallet growth in itself suggests something beyond just headline-driven speculation,” Young highlighted.
Under President Donald Trump’s administration, the U.S. regulatory climate has become more tolerant of crypto. As a result, institutional investors are seeking higher returns in tokens such as Ethereum, Solana, Aave, and others.
Although Grayscale filed a spot Dogecoin ETF application, it hasn’t yet been approved.
Unlike Bitcoin, Ethereum, and other cryptocurrencies, Dogecoin is a “cultural asset,” says Young, highlighting the token’s “ability to rebound during downturns.”
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