Crypto analyst Conor Grogan has revealed that a Robinhood wallet is holding almost $10 billion worth of Dogecoin (DOGE), raising concerns about its potential impact on the Dogecoin market.
Robinhood, an American financial services company, has long been a fan of Dogecoin, which is currently the largest meme coin by market capitalization. According to a report by CNF, Dogecoin accounted for a significant portion of Robinhood’s revenue in 2021.
The memecoin experienced a massive surge in popularity due to continuous social media attention from billionaire Elon Musk and other influential figures. This speculative frenzy led Robinhood to temporarily halt crypto trading at one point.
However, in August 2023, Robinhood announced its support for DOGE. This came six months after the company launched a crypto wallet, signaling its commitment to expansion. Later in late 2024, Robinhood started supporting Dogecoin transfers in the EU.
Since then, Robinhood has also opened its doors to other competing meme coins like Shiba Inu (SHIB) and Dogwifhat (WIF). Currently, Robinhood wallets hold nearly one-third of Dogecoin’s total circulating supply, which amounts to 147.56 billion DOGE.
While this shows significant support for DOGE, the centralized holding is also a concern for the memecoin. If Robinhood decides to liquidate its holdings, it could have a significant impact on Dogecoin.
In 2021, the blockchain analytics platform Lookonchain suggested that Elon Musk held the largest Dogecoin wallet based on the timing of one of his social media posts. This would make Musk the biggest Dogecoin market maker. In a recent update, Musk confirmed that he personally owns DOGE but did not disclose the amount. Interestingly, Musk’s social media comments about DOGE have played a significant role in shaping the memecoin’s price.
Discussions around Dogecoin have recently gained traction in the US after Senator Joni Ernst used a Doge-themed visual during a speech in Congress. Dogecoin co-creator Billy Markus highlighted this event in a post on X.
During her Senate speech, Senator Ernst displayed an image of the DOGE memecoin, depicted as a sand-dust cloud engulfing Washington, D.C. The image symbolizes the potential spread of the Department of Government Efficiency (D.O.G.E) operations throughout the city in the coming weeks.
D.O.G.E. is an advisory group led by Elon Musk that aims to reduce government spending and establish a more efficient administration. The group pledges to cut approximately $2 trillion from the government’s yearly budget.
Regarding DOGE’s price, it has remained stagnant over the past year. The memecoin experienced a significant rally in the fourth quarter of 2024 but is currently facing a downtrend due to a general market bearish sentiment.
At the time of writing, DOGE has slightly recovered and is trading at $0.3365, up 0.9% in the last 24 hours.