Dogecoin (DOGE) 'whales' have purchased over 300 million Dogecoins in the past week. This indicates a growing confidence among long-term investors. Meanwhile, short-term holders are exiting the market, typically conducting loss sales after recent market corrections.

The on-chain fundamentals of Dogecoin remain strong

According to on-chain data, only 9% of Dogecoin investors who bought in the past 30 days have realized profits. This decline suggests that many short-term traders are selling their holdings of Dogecoin. This sell-off event was identified a few days ago, with approximately 271 million Dogecoins sold at a loss.

It is worth noting that this sell-off was caused by price fluctuations, which experts refer to as wealth being forced to shift to stronger investors. 'Whales' holding 100 million to 1 billion DOGE bought over 330 million DOGE at a discount. This increased their total holdings to 26.73 billion.

Data also shows that even though interest from ordinary investors has declined, the on-chain fundamentals of Dogecoin remain strong. Key metrics such as network activity, trading volume, and wallet growth are stable, indicating that long-term investors are preparing for future growth.

Dogecoin ETF is about to be launched

There is no doubt that dog-themed memecoins have experienced countless hype-driven surges over the years. Recently, Grayscale Investments submitted a proposal to launch an exchange-traded fund (ETF) that tracks the price of Dogecoin (DOGE).

If regulators approve the submitted proposal, it will allow investors to access it through traditional securities exchanges in a regulated manner.

This will give Dogecoin a larger presence in the mainstream cryptocurrency market. Meanwhile, Grayscale announced that it will rename its 'Grayscale Dogecoin Trust' to 'Grayscale Dogecoin Trust ETF.'

According to TheCoinRise, the new Digecoin fund will be listed on the New York Stock Exchange Arca under the ticker symbol GDOG. However, the proposal still awaits approval from the U.S. Securities and Exchange Commission (SEC).

The strategic role of Dogecoin

Dogecoin was created in 2013 by software engineers Billy Markus and Jackson Palmer, originally as a lighthearted payment system, and has now developed into the eighth-largest cryptocurrency by market capitalization.

Recall that Bit Origin, a Chinese pork processor turned Bitcoin miner, has officially launched its crypto fund strategy by purchasing 40.5 million Dogecoins.

This marks a significant shift in its business development direction. Mr. Jiang, CEO of Bit Origin, stated that the decision to adopt Digecoin as its fund management platform was due to the token nearing a 'turning point' for micro-payments. This is thanks to the renewed interest from developers and the broader institutional push for tokenization.