Latest update on Dogecoin says that there has been an intense effort by miners and traders to keep the price of the Dogecoin at $0.06. This conflict over price stability has been going on as the amount of DOGE held by miners has fluctuated, which has caused the price of DOGE to consolidate since August 18th. Collectively, Dogecoin miners controlled about 4.67 billion DOGE as of August 17.
Investigations show that the amount of DOGE held by miners has gradually declined over the past several weeks. About 4.35 billion DOGE were in the collective possession of miners as of October 5th, a decrease from the previous day. This decrease shows that miners have been exchanging their DOGE rewards for fiat or other assets, which has affected the dynamics of the supply of DOGE in circulation as a whole.
Dogecoin traders and investors, who have been actively buying and holding DOGE to stave against the selling pressure from miners, are on the other side of this intriguing conflict—the price stability of DOGE at or near $0.06 results from the struggle between miners and traders.
The price of DOGE has been fluctuating about $0.06 due to miners dumping their holdings while traders and futures traders have been absorbing the supply. The recent movement of Dogecoin has resonated suspicion that Dogecoin miners sold 320 million DOGE from their reserve recorded between August 17th and October 5th.
DOGE Open-Interest Average $205 Million, Miners Sells 320 Million DOGE
It was also gathered that the open interest in these contracts was an average of $205 million on September 21th, indicating a sizable stake in DOGE derivatives. By October 5th, this interest had grown to $235 million. Growing open interest suggests that participants in futures trading closely follow the changes in DOGE’s price.
A price stability phenomenon has emerged in the Dogecoin market due to the dynamic interaction between miners, traders, and futures traders. An available trading chart published on the Todayq News platform explains that the balance of popular Dogecoin miners and the mining pool generally shows that these miners have sold $19.2 million worth of Dogecoin between August 27th and October 5th.
There has been a major movement of capital into DOGE, with an accumulated investment of $28 million recorded in Dogecoin. Meanwhile, the Todayq analysis shows that the price of Dogecoin has been consolidating since August 28th, mainly because of the massive selling activity among miners.
The fast drop in the miner’s total reserve is believed to mean that the node validators are working on (or have already started) selling a major portion of their rewards from the block. As at press time, DOGE trades at $0.061392 in the last 24 hours, with total trading volume of $101,534,136.
