A long-dormant crypto whale has awakened after years of inactivity to move thousands of dollars worth of Dogecoin (DOGE), according to on-chain data.
Fresh data from blockchain analytics platform Whale Alert shows that a Dogecoin address that had been dormant for 11 years has been reactivated. The wallet contains 870,019 DOGE tokens currently worth $391,889. The reactivation of such an old wallet has ignited curiosity among market participants.
The mysterious returns of dormant DOGE addresses
The abrupt activity of the inactive DOGE address has stirred speculations about the motivations behind its reactivation and its impact on the market. The activation of dormant crypto wallets normally gains massive attention because of their connection with early adopters or long-term holders.
The owner of the DOGE wallet remains unknown and his reason for reactivating the account is still undisclosed. Chances remain that the owner is an early adopter who has made a decision to liquidate his investment. Alternatively, the reactivation could have been part of a security concern or an investment strategy.
Normally, the waking up of such addresses signifies extraordinary situations. These could be issues associated with security concerns, rediscovery of lost keys, or recouping profits during a bull market.
Incidences of long-inactive Dogecoin addresses awake from the dormancy have been reported in recent times, as users reactivating accounts containing untouched deposits for years.
Early last month, Whale Alert spotted a dormant address containing 480,316 DOGE (worth $131,410) reactivated after 10.8 years. In May, another inactive Dogecoin wallet containing 1,556,994 DOGE (valued at $123,155) reemerged after remaining dormant for 9.3 years.
The revival of such dormant accounts suggests that the tokens could have been acquired shortly after Dogecoin’s launch, pointing out the resilience of such wallets over an extended period. Another likelihood, as highlighted above, is that the owners recovered the wallet’s missing keys, allowing them to reactivate the accounts.
Whale activity and DOGE value
While market activities from long-dormant wallets are rare, typically they are powerful, instigating curiosity within the crypto community.
Quantities of Dogecoin tokens held in wallets inactive for over 10 years remain high, highlighting the confidence of long-term holders. However, sudden activity from these wallets can cause doubt among crypto users who may wonder whether their intent is to sell.
Besides curiosity, huge market activity executed by whales often draws attention. Late last month, Whale Alert flagged a big whale transferring 197,606,395 DOGE to Coinbase. The whale executed this transaction worth $84.59 million at a price of $0.428 per DOGE.
Whales normally conduct their market activities for several reasons, like in this case, the transfer of a meme coin to an exchange potentially signifies that the investor is preparing to sell. Historical activity of this wallet indicates regular outflows and inflows, supporting the possibility of a sale.
Dogecoin’s price has risen evenly over the past month, making recouping profit a reasonable move for many investors.
Doge price is currently hovering around $0.4564, up 5.2% in the last 24 hours. The meme coin rose 8.00% in the last 7 days, making it outperforming the global digital asset market which is up 7.80%. Over the previous week, DOGE has maintained a trading volume above $7.4 billion, making it an attractive asset for investors and traders.
