- In September, Dogecoin whales have significantly reduced their on-chain activity, with outflows from major wallets dropping by 80.7%.
- Historically, September can be challenging for cryptocurrencies, but Dogecoin has often performed well despite market trends.
Dogecoin (DOGE), the meme-inspired cryptocurrency that once captured the hearts and wallets of many, is seeing a notable shift in the behavior of its large investors. Recent data from IntoTheBlock reveals a dramatic reduction in on-chain activity among Dogecoin whales since the start of September.
A Sharp Drop in Whale Outflows
According to the latest metrics, outflows from wallets holding at least 0.1% of the circulating supply of DOGE have plummeted by 80.7%. Specifically, these major investors withdrew only 17.42 million DOGE in September compared to 181.29 million tokens in the previous month. This significant decline indicates that whale activity has slowed substantially.
In addition, the net flow of Dogecoin into whale wallets has dropped to 10.54 million DOGE, which is four times less than the amount recorded the day before the decline began. This sharp reduction suggests that large holders are currently less active in trading or moving their assets.
September’s Historical Impact on Cryptocurrencies
September has historically been a challenging month for cryptocurrencies. This trend can often be attributed to a combination of seasonal factors and market recalibrations as investors return from summer breaks and reassess their portfolios. Typically, this leads to profit-taking and increased selling pressure across various assets.
Despite these challenges, Dogecoin has managed to perform relatively well in September in past years. Historically, the meme cryptocurrency has shown an average profitability of 11.3% during this month, contrasting sharply with Bitcoin’s average negative return of -6.21% over the same period. This suggests that while September tends to be rough for many cryptocurrencies, Dogecoin has managed to buck the trend.
What Lies Ahead for DOGE?
The recent drop in whale activity raises questions about the future of Dogecoin. Whether this is a temporary dip or a sign of a more significant trend remains to be seen. However, it is clear that any significant price movements in DOGE in the coming weeks will likely involve substantial participation from major players.
As September unfolds, market watchers and Dogecoin enthusiasts will be keenly observing how these shifts in whale behavior impact the cryptocurrency’s price and overall market dynamics.
