Will Dogecoin Crash in 2021? About 100 Wallets control 90% of the DOGE supply

Dogecoin is one of the most popular and trending cryptocurrencies in the world right now. At the time of writing this article, the meme coin has already become one of the top 5 coins, in terms of market cap. Dogecoin has already reached new records multiple times since April and reached an all-time high price on May 5, capping at $0.72. With so much attention and hype that Dogecoin has been receiving, millions of crypto newcomers are starting to invest in Dogecoin. However, crypto experts have real doubts about the stability of Dogecoin. Many crypto experts believe Dogecoin may be in a bubble. In this article, we'll look at what Dogecoin is and will Dogecoin crash anytime soon.

What is Dogecoin?

Dogecoin is a popular cryptocurrency that was formed in 2013 as a joke. Doge was built to a friendly introduction to the concept of cryptocurrency for the general public and people who had never heard of cryptocurrencies before. From the start, Doge had many advantages going for it. Doge was well known because of its meme status. Doge was made from a fork of the Bitcoin blockchain. People trusted Doge since it was started as a joke and not as a 'get rich quick' scheme, like many other coins. Additionally, Doge had a low entry cost, as a couple of years Doge barely cost a few pennies. However, as the popularity of Doge grew, so did the demand. 

Should you buy Dogecoin? Will Dogecoin Crash?

Crypto markets are highly unstable and unpredictable. However, most crypto experts agree that Dogecoin is not a good long-term investment option due to a number of reasons. Doge is an inflationary coin, meaning it has an endless supply that keeps growing more and more rapidly as time goes. Every year, more than 4 Billion Dogecoin are mined and added to the overall supply. In the long term, this makes Doge unstable for long term investment, unlike deflationary coins like Bitcoin, which has a high demand and a limited supply. 

Right now, Doge has a very high demand that keeps driving the prices up. However, slowly as the demand drops, while the supply continues, the price will start to fall. Moreover, as per Yahoo Finance, almost 90 per cent of all Dogecoin supply is owned by about 100 wallets. If these people decide to sell their coins, more than a hundred billion Dogecoins will flood the market, causing a major crash. However, people should do their own research before investing in any cryptocurrencies. Stay tuned for more updates on Dogecoin and cryptocurrencies 

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