The Wolf Den #235- A Penny Saved Is A Penny Earned
6 Impressive Facts About Doge - IntoTheBlock
In this report, we bring to you the latest in on-chain cryptocurrency analysis. We look at the blockchain directly and analyze balances, transactions, and the overall activity of market participants. This gives us a unique insight into the future of the market.
This section is written in conjunction with IntoTheBlock (ITB). ITB is an intelligence company that leverages machine learning and advanced statistics to extract intelligent signals tailored to crypto-assets. IntoTheBlock tackles one of the hardest problems in crypto: to provide investors with a view of a crypto asset that goes beyond price and volume data.
The Wolf Den research team uses IntoTheBlock to dig deeper and get the most important insights about the crypto market.
6 impressive facts about the DOGE momentum.
What started as a joke 7 years ago is quickly becoming one of the most profitable investments in history. Since the beginning of the year, the meme crypto asset has surged by 27,361.25%
Dogecoin has continued to set new highs and has now claimed the 4th place by market capitalization, taking over crypto-assets such as XRP, ADA, USDT and UNI.
In this edition, we will provide 6 interesting facts to illustrate the impressive YTD performance of DOGE.
1. $1,000 invested in DOGE in January 1st of this year would be worth $273,612.5 today
As of May 5 using DOGE’s financial indicators
To put things in perspective, DOGE was trading at a price of $0.0049 on January 1st. Driven by a constant shill by celebrities like Elon Musk, Mark Cuban and Snoop Dogg and mass adoption through exchanges like eToro and Gemini, as of writing time, DOGE was exchanging hands at around $0.69, with a 40% increase during the last 24 hours.
2. With a current market capitalization of $88 billion, DOGE is the 4th most valuable crypto-asset.
DOGE became the fourth largest crypto-asset in the world by market capitalization, and if the price of Dogecoin increases by another 15%, it will be the third largest asset, surpassing BNB.
But let’s go a little further into the analysis.. even though it is not a fair comparison, at the current market cap of $88b, Dogecoin would be ranked as the #173 most valuable company in the world.
Meaning that is more valuable than traditional well-known companies such as:
BP, Mondelez, Snap, FedEx, BNP Paribas, General Motors and British American Tobacco.
3. The average balance of a DOGE holder is currently at $17.493k
As of May 5 using DOGE’s financial indicators
The Average Balance (in $) indicator calculates the mean value an address holds for a particular crypto-asset. IntoTheBlock measures this by dividing the market cap over the total number of addresses holding this crypto-asset. In other words, it excludes addresses with a balance of zero to arrive at the average holdings on-chain.
Thanks to the remarkable price action, the average balance of a DOGE holder went from $217 on January 1st of 2021 to over $17,000 yesterday.
4. DOGE Perpetual Swaps YTD volume is higher than the combined volume of ADA and LTC
Yes, the recent hype was also reflected in the derivatives market, as perpetual swaps traders did an incredible YTD volume of $699 billion, while the combined volume of LTC and ADA is around $615 billion.
On two occasions, the volume of these derivatives has crossed the $60 billion daily traded mark, a milestone only achieved by BTC, ETH and BNB.
As of May 5 using DOGE’s derivatives indicators
At the beginning of the year, the daily traded volume in DOGE perpetual swaps was around $143 million, and today it reached its second highest number ever recorded at $65.9 billion.
5. The hype brought a ton of new and active DOGE investors.
As of May 5 using DOGE’s network indicators
In just 4 months of 2021, DOGE has:
Increased the number of holders (addresses with a balance) by 22%. There are now 3.72 million addresses currently holding DOGE, meaning that 680,000 new investors entered YTD.
Recorded a new record in May of traders (addresses holding for less than 1 month and actively trading). Those 671 thousand addresses aggregate a volume of 43.37 billion DOGE
6. A lot of people may not know this, but DOGE is highly concentrated.
As of May 5 using DOGE’s ownership indicators
Be careful out there folks, as there are 83 addresses that hold 65% of the DOGE circulating supply.
Bitcoin Thoughts And Analysis
4-HOUR CHART
There's no good reason to be concentrated on BTC for now, as I have been saying. It is basically chopping sideways. Nice bounce off of that descending blue resistance on a first retest as support, which also had an oversold bull div on the hourly (not shown). Now price is back at the 50 MA and the 50% level. Nothing to see here.
HOURLY CHART
I was watching this small descending channel which broke to the upside. Now we are at a key zone of resistance, with tons of previous price action. No surprise price is being rejected and struggling to push through.
I rarely zoom into the hourly, that's how desperate I was to find something to show you!
Chop Chop Chop.
Altcoin Charts
OMG/BTC
This looks like it is gearing up for a nice move, but there is no entry yet. I am expecting some resistance and consolidation around 1962 which would make a bit of a cup and handle. Either way, we need to be above 1962, and the ideal entry is a retest of that area as support. Targets are horizontal lines above.
OMG/USDT
OMG is testing the range highs again, after being rejected there recently with a fake out above. At this point, a move above the all time high at 11.37 is ideal, because that would send price into discovery for new highs. Either way, I like the persistence at the top of the range here. Like the BTC pair, we are at resistance so I don't see a reason to buy now. I am trying to get you ahead of the move if it happens, which it may not. The safest entry is after a confirmed close above 11.37.
Bitcoin’s Energy Consumption Is All About Perspective
I've put this debate to rest before in the newsletter, but a well-researched nail-in-the-coffin article just came out from Bitcoin Magazine that I couldn't help but share. The rauthor pointed out some of the major flaws in the energy debate. Most critics fail to understand the difference between “energy use” and “electricity use” oftentimes conflating them erroneously. Furthermore, the new trend is for companies to prioritize “recycling,” which is oftentimes a dirtier process that requires more electricity than otherwise not recycling.
The numbers do the talking. According to recent research, the gold mining industry accounts for about 265 TWh of energy. If you are like me and that number does not make a lot of sense, just know that it is more than double the energy that Bitcoin consumes, which is about 113 TWh. This also fails to account for the destructive nature of the gold mining industry, which leaves untreated gashes in the Earth from harsh or illegal mining. Anyone that really wants to take on this debate has to first morally and ethically justify the U.S. military, legacy banking system, air conditioners, and clothes dryers outperforming Bitcoin in their energy consumption - there really just isn't a place for this debate.
A Doge Listing Is Driving Price Up
Dogecoin still has the uncanny ability to attract newcomers into the space in droves, making it an ideal token for crypto exchanges to list. Gemini’s announcement to list the asset yesterday sent the token flying nearly 50% in a few hours post announcement. eToro listed the day before, Although an epic run, there is something in every hodlers mind that seems inevitable - a Coinbase listing pump.
The Coinbase pump was once a serious force, but now is primarily a myth in practice. That being said, the Coinbase listing still carries some massive weight if the right variables are met. If Doge can pump 50% from Gemini, a Coinbase listing is starting to look like the mother of all potential pumps. Mixing the perfect newbie platform with the perfect newbie coin sounds like lighting a barrel of dry powder.
All of that said, I think many Doge fans are buying because of Elon Musk's upcoming appearance on SNL. Keep in mind, like Doge Day, this could be a "buy the rumor, sell the news" opportunity,
News And Analysis Video
I did a quick review of yesterday's news and looked at the top 10 coins by market cap. Still worth a quick watch!
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.