Dogecoin has seen a significant surge in whale activity following news that electric car maker Tesla would 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 spike in whale activity comes at a time when Dogecoin’s valuation on global exchanges jumped 40 percent in a single day on Tuesday, December 14.
As first reported by Benzinga, data from Into The Block shows that the surge in large transactions began to pick up shortly after DOGE’s price rose based on Musk’s announcement. The report also notes that market participants were quick to share positive social media sentiment about the cryptocurrency, boosting DOGE’s social dominance across platforms by 54 percent in a 24-hour period.
Elon Musk, aka “Dogefather”, was known to be integrating DOGE payments with Tesla car purchases under the pseudo name “SHIBA”. The company had already started accepting Bitcoin payments earlier this year.
“Bitcoin is not a good substitute for transaction currency. Even though it was made as a dumb joke, Dogecoin is better suited for transactions. The total transaction flow you do with Dogecoin, such as transactions per day, is much higher potential than Bitcoin,” Musk said. during an interview right after he was named “Person of the Year” by Time magazine.
Dogecoin whales can also move funds based on a recent announcement from a DOGE developer, which revealed that they have managed to create the first non-fungible token (NFT) on the Dogecoin blockchain and placed the trade in which he it had hit.
The developer pointed out that on the Dogecoin blockchain, the cost of mining the NFT was only 0.01 DOGE. The developer described the coining process and said he used SHA-256 hash functions to mint the NFT and store it on a Checksum.
Search interest for Dogecoin exploded during the massive 10,000 percent price rally earlier this year, from an average of 135,000 monthly searches in April 2020 to 16.5 million in April 2021.
At the time of writing, Dogecoin’s valuation has fallen and is trading at $0.18 (approximately Rs. 14.44). The dog currency is down 1.9 percent in the past 24 hours.