Apart from dogecoin investors, the meme cryptocurrency miners are also reaping millions for generating new coins and confirming transactions amid the 2021 rally.
Data provided by crypto intelligence platform Coinmetrics indicates that between May 23 and June 23, dogecoin miners have earned at least $6 million daily. Furthermore, between January 1 and June 3, the dogecoin total 30-day average mining revenue stands at $259.33 million.
Dogecoin mining revenue (30-day average). CoinMetrics.io data.
The mining revenue correlates with dogecoin’s 2021 rally that has resulted in demand for the coin. On a year-to-date basis, dogecoin has surged 9,400%, benefiting from the general crypto market price movement. In addition, the meme coin has received massive support from Tesla (NASDAQ: TSLA) CEO Elon Musk through supportive tweets.
The surge in DOGE’s value has also resulted in millionaire investors. According to our previous research, as of May 4, 2021, about 2,866 dogecoin wallets each had a value of at least $1 million. The figure represented a growth of 116% from April 23 when 1,321 wallets had doge with the value of at least $1 million.
Is dogecoin a bubble?
Some analysts view dogecoin’s rise as a bubble due to the digital currency’s lack of real-world utility use. However, in recent months after Musk announced that his rocket company SpaceX would be using the crypto for one of its missions to the moon, the status has been changing.
Furthermore, the Dallas Mavericks basketball team, medical supplier CovCare, has adopted dogecoin as a payment alternative.
Despite the surge in dogecoin’s value, there have been concerns the celebrity backers might opt out, leading the price of the crypto to tumble.
According to Galaxy Digital CEO and billionaire Mike Novogratz, dogecoin’s rally is s a retail phenomenon driven by the supply of more money into the economy.
“This is very much like GameStop where these meme coins tap into something in the young, new investor base, and it becomes fun. It builds on momentum, and they want to go after the shorts. But, I don’t think it is going to have legs because it is all retail and all of a sudden,” said Novogratz.
Following the rally, dogecoin’s price has corrected alongside the general market sentiments. By press time, the coin was trading at $0.38.