Data shows Dogecoin whales have deposited more than $5 million in crypto to Coinbase. Here’s what DOGE pricing means.
Dogecoin Whale sends 57 million DOGE to Crypto Exchange Coinbase
As data from the crypto transaction tracker service Beware the Pope, a massive Dogecoin transaction has taken place on the blockchain today. In total, this transfer involved the movement of 57,056,400 DOGE, the value of which rose to $5 million when the transaction was sent.
Since the amount here is huge, the entity behind the transfer is probably a whale, or at least a group made up of several large investors. Due to the huge volume of tokens in this kind of transaction, it can sometimes cause visible ripples in the price of the asset.
But what changes can be produced in the crypto value of the movement of these coins depends on several factors, with the exact purpose behind the transaction being the main one.
Here are some specifics about the latest Dogecoin whale transaction, which may shed some light on why investors decided to do this:
Looks like the holder only had to pay a small fee of $0.21 for this massive transfer to be possible | Source: Whale Alert
As you can see above, the sender address for this Dogecoin transaction is an unknown address, which is a type of address that is not associated with a known centralized platform, and thus possibly a private wallet. The recipient in this case is an address associated with the crypto exchange Coinbase.
Note that the transaction details show that there are other receivers now for this transaction, with a total transfer amount of almost $10.5 million. But upon closer inspection, it is only the same address as the sender, which means that this output only shows the amount remaining in the original wallet (that is, more than $5.3 million, because $5.1 million went to Coinbase) .
Transactions like this where coins move from private wallets to exchanges are called exchange inflows. Investors typically deposit into exchanges for the purpose of selling, so inflows can have bearish implications for meme coin prices.
If this Dogecoin whale really did this transfer with the intention of selling it on Coinbase, DOGE might feel the negative effects of it. Data from WhaleStats, however, shows that the crypto was in the top 10 tokens bought by the largest BNB Smart Chain (BSC) whales only yesterday.
JUST IN: $DOGE @dogecoin now in the top 10 tokens bought among the 100 largest #BSC whale in the last 24 hours 🐳
Check out the top 100 whales here: https://t.co/0SYnjw0xQs
(and hodl $BBW to see data for the top 4000!)#DOGE #whalestate #babywhale #BBW pic.twitter.com/G6RCR4INnt
– WhaleStats – BSC’s 1000 richest list (@WhaleStatsBSC) January 23, 2023
Accumulations from these whales can generally be bullish for price, so depending on the scale of these purchases, they can offset any selling pressure that the current whales may exert. In such a scenario, Dogecoin will not feel the impact of exchange inflows.
DOGE price
At the time of writing, Dogecoin is trading around $0.0889, up 5% over the past week.
The value of the crypto seems to have climbed up in recent days | Source: DOGEUSD on TradingView
Featured images from Richard Sagredo on Unsplash.com, charts from TradingView.com