The number of Dogecoin miners has substantially fallen since the end of March according to the cryptocurrency intelligence service IntoTheBlock. We are focusing on March because it was during this month that the most DOGE has been found in miners’ reserves so far in 2023. They are currently worth 4.53 billion DOGE, which is 240 million less than they were six weeks ago. At the current price of Dogecoin, that amounts to $514.63 million and $45.69 million, respectively, in dollars.
That might appear insignificant in comparison to Dogecoin’s estimated market worth of more over $10 billion, according to CoinMarketCap. However, the 240 million held by DOGE constitute 5% of total miner reserves, which suggests that the rate of dumping is higher than typical.
It’s interesting to note that the miners’ sell-off began before the DOGE price on April 3 increased by more than 20%. A deeper examination reveals that 80 million DOGE were sold the week prior and just 10 million less the following week. The price increased by 45% and decreased by 21% throughout this time, respectively. That is, it can be claimed that this pumping did not benefit Dogecoin miners.
Under pressure
It is yet unclear if miners would keep selling off their reserves and quicken the pace of the sale. However, it unquestionably puts pressure on the Dogecoin price, which is already close to its lowest levels since the year’s began.
In comparison to the over 140 billion coins in circulation, 4.5 billion DOGE may appear to be a meagre possession. But since 2017, miners have been consistently selling their Dogecoin, and eventually, this volume will be released onto the market.
