Mysterious dogecoin whale sees holdings value plummet by 67% from peak, to $8 billion, amid crypto meltdown

Markets Insider
Markets Insider

The mysterious dogecoin whale that owns more than 28% of the circulating supply of the cryptocurrency has seen the value of its holdings decline by 67% from its peak, to $8.2 billion on Monday.

The whale's address owns nearly 37 billion dogecoins, which were worth more than $24 billion in early May. But a far-reaching crypto meltdown has led to a steep decline in the value of the meme-inspired cryptocurrency in recent weeks.

Enthusiasm around dogecoin peaked at about the same time Tesla CEO Elon Musk hosted "Saturday Night Live" and referred to dogecoin in a skit, as many crypto traders had expected . But since then, little has been able to stimulate demand for the cryptocurrency, and 5 billion dogecoins come into existence every year.

The dogecoin whale has not shed holdings since the cryptocurrency peaked at $0.74 last month. In fact, the address has consistently added dogecoin in small increments. On Monday, the address added one dogecoin to its wallet. That followed additions of various "meme" amounts , including 4.20 dogecoins on June 10 and 6.9 dogecoins on June 9.

One crypto expert has said the dogecoin whale is most likely a cryptocurrency exchange . There has also been speculation that Robinhood is behind the dogecoin address.

Despite the decline in dogecoin, many still see potential for the cryptocurrency to hold utility as a viable form of payment. Several businesses now accept dogecoin, including the NBA's Dallas Mavericks and MLB's Oakland Athletics.

Several people have recently responded to Musk's call to improve dogecoin as a payment . Charles Hoskinson, the creator of Cardano, said that, if improved, dogecoin could have potential for real-world use .

"Dogecoin is a reasonable target for someone to fix it up and make it an interesting cryptocurrency," Hoskinson said in a podcast on Friday. "My hope is that a compromise can be made where real developers come in and they start working on doge to create some use and utility for it, so at least it has a value floor and won't collapse."

While the volatility in dogecoin is likely to continue, so too is the resilience of the mysterious dogecoin whale. Despite the 70% decline in dogecoin since its peak, the cryptocurrency is up 4,508% year-to-date.
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