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What is the Dogecoin (DOGE) congestion problem highlighted by Elon Musk?

Tesla CEO Elon Musk tweeted yesterday that he will support Dogecoin whales,

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What is the Dogecoin (DOGE) congestion problem highlighted by Elon Musk?

Tesla CEO Elon Musk tweeted yesterday that he will support Dogecoin whales, which will sell most of the DOGE caches to facilitate the distribution of Dogecoin (DOGE) .While it may be a joke considering Elon Musk’s previous tweets, there is indeed a congestion problem with Dogecoin. Reports show that a single organization holds more than 27% of the altcoin’s entire market cap. This is worth over $ 1.8 billion, or roughly the GDP of a mid-sized island nation as of today.

Additionally, the top twenty DOGE addresses hold more than 50% (over $ 3.5 billion) of the altcoin’s current circulating supply. These may be crypto exchanges holding Dogecoin as a reserve in their cold wallet, but so far no exchange has verified this.Musk insists that this must change. The tweet he posted yesterday about Dogecoin owners selling their DOGE points to this situation.

Dogecoin Price Analysis

His response to the tweet shows that Musk’s advocacy of DOGE may not go on forever. “If the ” whales “don’t sell and keep keeping their DOGE, Dogecoin could lose Musk’s support ,  a Twitter account said. Musk replied by saying “Yup” (Yes).

The stacking in Dogecoin means a problem for DOGE’s long-term foundations as with other altcoins. With less supply, prices can artificially and disproportionately rise for the benefit of a few large wallets , and DOGE’s price inevitably falls when such wallets want to sell.

Created as a joke in 2013, Dogecoin’s meme value, the use of the Shiba Inu dog as a mascot, and a cute narrative have brought the altcoin ‘s market value to a pretty good point over the years.Over the past few weeks, celebrities, rappers, entertainment stars and especially Musk himself (as “CEO of Dogecoin” in his own way) tweeted about this altcoin to millions of followers. This caused the altcoin to rise from below $ 0.004 to $ 0.07 in just the past two months.

But can the whales selling their DOGE savings save the so-called “crypto money of the people” ? Musk thinks so.

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