In a recent revelation, crypto analyst Conor Grogan disclosed that a Robinhood wallet holds nearly $10 billion worth of Dogecoin (DOGE). This disclosure has raised concerns about the potential impact on the Dogecoin market.
Robinhood, an American financial services company, has shown a strong interest in Dogecoin, which is currently the biggest meme coin by market capitalization. According to a CNF report, Dogecoin contributed significantly to Robinhood’s revenue in 2021.
The memecoin experienced a massive rally due to continuous social media attention from billionaire Elon Musk and other prominent figures. This speculative frenzy led Robinhood to temporarily halt crypto trading.
However, in August 2023, Robinhood announced its support for DOGE. This announcement came six months after the company launched a crypto wallet, signaling its commitment to expanding its services. Subsequently, in late 2024, Robinhood started supporting Dogecoin transfers in the EU.
Since then, Robinhood has also embraced other meme coins such as Shiba Inu (SHIB) and Dogwifhat (WIF). Currently, Robinhood wallets hold approximately one-third of Dogecoin’s total circulating supply, which amounts to 147.56 billion DOGE.
While this indicates significant support for DOGE, the centralized holding by Robinhood also poses risks for the memecoin. If Robinhood decides to sell its holdings, it could have a substantial impact on the price of 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 market maker for Dogecoin. In a recent update, Musk confirmed that he personally owns DOGE, although he did not disclose the amount. Interestingly, Musk’s social media comments about DOGE have played a significant role in shaping its price.
In the US, discussions around Dogecoin have gained attention 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, depicting it as a sand-dust cloud engulfing Washington, D.C. This 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, focused on reducing government spending and establishing a more efficient administration. The group aims to eliminate bureaucracy and intends to cut around $2 trillion from the government’s annual budget.
Regarding DOGE’s price, it has remained relatively stagnant over the past year. The memecoin experienced a significant rally in the fourth quarter of 2024, but it is currently in a downtrend due to 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.