An early adopter of Dogecoin recently reactivated a wallet that had been dormant for almost a decade. Whale Alert, a service that tracks cryptocurrency transactions, detected a transaction on the DOGE blockchain from an inactive address with 1,556,994 DOGE, equivalent to $123,155.
— Whale Alert (@whale_alert) May 4, 2023
Further investigation of blockchain explorer service Blockchair reveals that the first-ever transaction involving this Dogecoin wallet occurred on December 21, 2013.
It is worth noting that Dogecoin was introduced to the market on December 6, 2013, just a short while before this specific address became active.
The first transaction on this wallet was for around 300,000 DOGE, worth $117.30 at the time of transfer. The next day, the holder received another 304,995 DOGE worth only $95.46 as the price had fallen that day.
On New Year’s Day in 2014, the investor sold the tokens and gained approximately $40 in profit. Later that month, the holder made two more purchases, buying 550,999.9 coins at $135.5 on January 14 and a larger stack of 1,005,995 tokens at $1,230.3 on January 29.
Recently, on May 4, the wallet was activated, and the holder transferred 550,999 DOGE, valued at $43,639, to two different addresses.
The stack of tokens in the wallet was worth $123,155, as it had been accumulated for only $1,365 before going dormant. This resulted in an astounding return of 8,922 percent, or $121,790 in gains.
Reactivated dormant Dogecoin wallet sparks community speculation
The reactivation of the nine-year-old wallet has left the crypto community speculating on the reasons behind the move. Twitter users have been suggesting various reasons why the holder waited so long before accessing the wallet.
Some speculated that the individual might have recovered the private key or hard drive needed to access the wallet, while others suggested that the owner was holding out for higher prices.
The timing of the wallet’s reactivation also raised questions, as it occurred when Dogecoin prices were relatively low. During the last bull run, Dogecoin soared to as high as $0.75 with a boost from the endorsement of Elon Musk, one of the world’s wealthiest billionaires and the owner of Twitter.
Long-dormant addresses are often linked to lost keys, and it is possible that the recent transaction was merely the holder reclaiming control. Interestingly, none of the wallets involved in the recent Dogecoin transfer happened in any known exchange, which has added to the mystery surrounding the event.
Currently, the coin is trading at around $0.0784, showing a three percent decline in the past week. Despite this recent dip, DOGE remains a hot topic as the eighth-largest cryptocurrency by market capitalization.
According to data from IntoTheBlock, 70 percent of Dogecoin holders have held onto their coins for a year or more, indicating a long-term investment objective. Only nine percent of holders have acquired their coins within the last month, while 21 percent have held their coins for a duration ranging from one to twelve months.
The historic success of Dogecoin has paved the way for other meme coins. As of May 2023, there are now dozens, if not hundreds, of meme coins flooding the market. Some of the most popular meme coins include DOGE, SHIB, Pepe (PEPE), Baby Doge Coin (BABYDOGE), FLOKI (FLOKI) and others, with market caps ranging from tens of dollars to billions.