Despite being based on an internet meme, Dogecoin was the third-largest crypto in the portfolio of inventors, according to the exclusive data from TipRanks shared with Finance Magnates. Bitcoin topped the list, followed by Ethereum, the second-largest cryptocurrency in market capitalization.
While DOGE managed to be in the top three cryptocurrencies in investors’ portfolios in the first three quarters of 2023, it was not even in the top five in the last three quarters of 2022.
Meme coins like DOGE always had a cult-like following. Billionaire entrepreneur Elon Musk also endorsed Doge on multiple occasions and even briefly changed the logo of X (previously Twitter) with the dog face of Doge. Musk’s tweet even makes Doge to swing in double digits.
The value of DOGE peaked in May 2021, reaching nearly $0.57. However, the value has plummeted significantly since then, as Dodge is currently trading at $0.071, about 87.5 percent below the peak. Although Doge remained volatile in 2023, its value did not change much over the past ten months but rallied 20 percent in the past week.
Apart from DOGE, the names of Ripple also appeared in the list of top five crypto holdings.
Price movement of Dogecoin in 2023, Source: Coinmarketcap.com
“Many market factors influence traders’ decisions when it comes to investing in or avoiding cryptocurrency,” Robbie Dayan, Head of Product at TipRanks, told Finance Magnates. “Factors like high volatility can be enticing to some traders seeking short-term gains while discouraging those with a more conservative approach.”
Rise in Crypto Holders
The data from TipRanks further revealed that From January 1, 2023, until October 25, 2023, 1,183 unique users held cryptocurrencies in their portfolios. With this addition, the total number of users holding cryptocurrencies jumped by 2.6 percent to 45,218. The numbers of users holding cryptos in the first three quarters of the ongoing year is 1,080, a significant jump from only 95 in the last three quarters of 2022.
TipRanks provides data and research tools to retail traders. It has partnered with dozens of brokers and trading platforms, taking its services to even more traders. Most recently, the company launched an Expert Advisory plugin for MetaTrader 5, which CFI has first incorporated. The cryptocurrency portfolio data were collected from the individual investors who use TipRanks’ smart portfolio to record their holdings.
The data shared with Finance Magnates further revealed that 4,298 users added crypto shares to their portfolios. Additionally, there are 2,816 users with open positions. However, 1,352 users had their shares in cryptocurrencies reduced, and 93 closed positions.
In the first three quarters of 2023, 34.8 percent of all transaction were buying crypto, while only 6.9 percent accounted for sale. In the last three quarters of 2022, these two figures were at 41.1 percent and 6.5 percent, respectively.
The growing demand for cryptocurrencies can be determined by the significant jump in Bitcoin and other cryptocurrency prices since the beginning of this year. The dollar value of Bitcoin has doubled since the beginning of 2023, when it bottomed out at $16,500. With the recent rally in the crypto market, BTC is trading at more than $34,100 as of press time.
Price movement of Bitcoin in 2023, Source: Coinmarketcap.com
“One primary factor that has kept traders engaged in crypto trading since its inception is the potential for high returns. Bitcoin and Ethereum returns over the years still attract traders who harbor an innate desire to earn more money or even become wealthy,” Dayan added. “Conversely, the main factor that drives traders away from crypto is FUD—fear, uncertainty, and doubt… Another Factor is the Halving Cycle, an event where the miners receive half the rewards for validating and adding transactions to the blockchain.”
Many factors are influencing the recent crypto rally. One of the most prominent ones is the anticipation of US regulatory approval for a Bitcoin exchange-traded fund (ETF). Although the Securities and Exchange Commission delayed the approval for years, some unofficial indications brought optimism to the market.
“I’m very optimistic about the prospects of crypto for the next two years, especially as we approach the Bitcoin halving event. I firmly believe that we will witness the approval of a Bitcoin spot ETF in the coming months, attracting a substantial influx of new traders into the world of Bitcoin,” said Dayan.
“Additionally, traders and investors will likely explore other investment alternatives such as gold and Bitcoin as hedges against global inflation. Finally, if interest rates decrease in 2024 or possibly even in 2025, it will push Bitcoin’s price with further upward momentum.”