Dogecoin has seen a significant increase in whale activity following news that electric car maker Tesla will accept the cryptocurrency as payment for select merchandise. According to on-chain data, the original meme-based coin has seen a 148 percent increase in “large transactions”, which are transfers worth over $100,000 (about Rs 76.11 lakh). The surge in whale activity comes at a time when Dogecoin valuations on global exchanges rose 40 percent in a single day on Tuesday, December 14.
As previously reported by benzinga, data from in the block shows that a surge in large transactions began shortly after the price jump of DOGE based on Musk Announcement, The report also noted that market participants shared positive sentiment on the cryptocurrency on social media, leading to a 54% increase in DOGE’s social dominance over a 24-hour period.
Elon Musk aka ‘Dogfather’ was known to be in the process of integrating DOGE payments Tesla Car purchase under the pseudonym “Shiba”. The company started accepting bitcoin payments earlier in the year.
“Bitcoin is not a good choice for a transaction currency. Even though it was created as a silly joke, Dogecoin is better suited for transactions. The total transaction flow that you do with Dogecoin, e.g. per day transactions have a lot more potential than bitcoin,” Musk said during an interview right after. Nominated Time Magazine’s “Person of the Year”.
dogecoin Whales may also move funds based on a recent announcement by the DOGE developer, which showed that they managed to create the first non-fungible token (NFT) on the Dogecoin blockchain and posted the transaction in which he mined it.
The developer explained that on the Dogecoin blockchain, the cost of shielding an NFT was only 0.01 DOGE. Describing the mining process, the developer said that he used the SHA-256 hash function to mint the NFT and store it on a checksum.
Search interest for Dogecoin exploded earlier this year during the cryptocurrency’s massive 10,000 percent price rally, rising from an average of 135,000 monthly searches in April 2020 to 16.5 million in April 2021.
At the time of writing, Dogecoin valuation is down and is trading at $0.18 (approximately Rs.14.44). Dogecoin is down 1.9 percent in the last 24 hours.