It was Doge day afternoon another time on Wednesday as Dogecoin (DOGE) continued its assault on the cryptocurrency market capitalization rankings. The meme coin overtook XRP to turn into the fourth-largest cryptocurrency by implied market capitalization after climbing to a per-coin valuation of $0.69 — a goal that was particularly set by merchants on social media.

However cryptocurrency’s newest media darling is probably not as healthful because it appears. For all of the hype surrounding Dogecoin (and its de facto master, Elon Musk), publicly out there knowledge suggests comparatively few individuals are truly utilizing the blockchain, and those that do use it account for an extremely massive portion of its total exercise.

Contemplate that the greenback worth of cash sent across the Dogecoin blockchain on Tuesday exceeded $58 billion. That determine was 70% increased than the quantity transferred on Bitcoin ($34 billion) and 260% increased than on Ethereum ($16 billion).

Digging into on-chain knowledge additional, we see that regardless of Dogecoin shifting a better worth of cash than the 2 largest cryptocurrencies on this planet, it achieved this with a mere fraction of their transactions.

Over 1.4 million transactions had been counted on the Ethereum blockchain yesterday, in keeping with data from Bitinfocharts, whereas near 300,000 had been counted on Bitcoin. Examine this to simply 76,000 recorded on the Dogecoin blockchain, and an obvious wealth hole begins to emerge.

Certainly, when taking a look at Dogecoin’s common transaction worth on the day in query, it stood at nearly double that recorded on Bitcoin (BTC). The typical DOGE transaction worth stood at $800,000, in comparison with $420,000 on BTC. Its statistics relative to Ethereum paint an much more dire image — Dogecoin’s common transaction worth exceeded Ethereum’s by 8,000%, regardless of processing solely 5% of the variety of transactions.

Mixed with the long-standing actuality that one single deal with holds 28% of all cash in existence, whereas simply 12 account for 67%, it turns into clear that Dogecoin isn’t precisely the folks’s champion that events would have the general public consider.

A just lately printed report by Galaxy Digital piled on the distress concerning Dogecoin’s basic lack of authenticity as a real cryptocurrency venture. Titled “Dogecoin: The Most Trustworthy Sh*tcoin,” the report highlighted the truth that Dogecoin’s GitHub repository (the place updates to the blockchain’s code are logged by builders) hasn’t been touched since 2017. What’s extra, the variety of absolutely synced nodes (computer systems working copies of the Dogecoin blockchain) is simply 26% of the general node rely, suggesting few individuals are prepared to take the time to keep up the blockchain’s community safety.

However even when the Dogehouse looks like a ghost city, the obvious actuality stays that Dogecoin is the very best performing digital asset within the cryptocurrency house. The coin has recorded 14,000% development since Jan. 1, when it was priced at a fraction of a cent.

Each credit score and blame for Doge’s seemingly irrational ascent have been placed on the “Dogefather” himself, Elon Musk, who has taken nice pleasure in posting Doge memes to his 52 million followers on Twitter all through a lot of 2021.

Nonetheless, it also needs to be famous that the coin’s latest peak of $0.69 is identical value goal set by Reddit merchants intent on artificially pumping DOGE’s valuation. The value level was initially meant to be reached on April 20 — a joke on prime of a joke on 4/20 day. Dogecoin solely reached a value of $0.420 on the time (growth), however now, just a little over two weeks later, it has lastly achieved its jocular targets. The final word value level being pursued by merchants is $1.

If extra proof is required that markets will not be all the time rational, look no additional than this 12 months’s GameStop pump, the place the share value of a near-dead model elevated by over 9,000%.

“Dogecoin has all the time been a joke, and the joke retains getting funnier,” said the Galaxy Digital report. Creator of the report and head of firmwide analysis at Galaxy Digital Alex Thorn did reward Dogecoin for its lack of pretense, noting that the coin’s fortunes weren’t tied to basis bulletins or developer guarantees and that its solely objective was to elicit a response.

“Dogecoin’s longevity is ensured as long as one truism stays: folks love a superb joke,” Thorn ended.