Dogecoin is seeing renewed activity from whales, or large holders of the meme-focused cryptocurrency, according to on-chain data tracked by analytics firm IntoTheBlock.
The number of transactions with a value of at least $100,000 rose to 2,440 on Monday, the highest since Jan. 14.
"The number of large transactions is a relevant metric tracking the count of transactions greater than $100,000," IntoTheBlock's explainer says. "Since this sum of money is not available to the average retail trader on-chain, the indicator acts as a proxy to the number of whales' and institutional players' transactions."
The agreement to buy Twitter by Elon Musk, the billionaire CEO of Tesla and SpaceX, was announced Monday, and could have galvanized whale activity in dogecoin. The cryptocurrency jumped 19% that day, biggest single-day gain since Oct. 28, according to data provided by TradingView.
"Musk's acquisition of Twitter, which has played a key role in crypto discourse and has adopted the asset class, has spurred speculation about possible implications," crypto derivatives firm FRNT Financial's daily newsletter dated April 26 said. "For example, a number of DOGE-related profiles have circulated an exchange on Twitter where Musk responded 'that would be [sick]' to the suggestion of replacing the social media platform's blue bird logo 'to a doge.'"
"Speculation about any role DOGE may play at a Musk-owned Twitter has also been spurred by some media outlets," FRNT said.
Musk is an outspoken proponent of cryptocurrencies and a longtime dogecoin fan.
In December, Musk, in response to a CoinDesk article, tweeted "Dooooge," suggesting the dog-themed cryptocurrency could help retail investors bypass high Ethereum transaction costs and access decentralized finance.
In an interview with Time magazine last year, Musk said dogecoin is better suited for transactions than Bitcoin.