The Dogecoin community is abuzz with the news that the whales, the largest holders of DOGE, have been shedding their holdings over the past year. This reduction in supply could be a bearish sign for the memecoin, as it suggests that big money is losing interest in the asset.

The Whales' Reduced Holdings

According to data from IntoTheBlock, the Dogecoin whales have lost around 9% of their net holdings since last year. This reduction in supply has led to a decrease in their share of the total supply from 45.3% to 41.3%. This means that the whales now own a smaller percentage of the DOGE supply, which could be a sign of a shift in sentiment among this cohort.

The Redistribution of Supply

The redistribution of the supply to smaller holders could be positive for the health of the DOGE ecosystem, as it means that the asset is less centralized over a few large entities. This could lead to a more diverse and resilient network, which could be beneficial for the long-term prospects of the memecoin.

Dogecoin's Activity

In other news, IntoTheBlock has shared an update on the activity on the Dogecoin blockchain, which shows that the memecoin is currently the number one memecoin in terms of the number of traders and transactions. This is a testament to the asset's popularity and the engagement of its community.

Conclusion

The reduction in the whales' holdings could be a bearish sign for Dogecoin, as it suggests that big money is losing interest in the asset. However, the redistribution of supply to smaller holders could be positive for the health of the DOGE ecosystem. The memecoin's activity on the blockchain is also a testament to its popularity and the engagement of its community.