It's not too dissimilar for BTC really. top 1% of holders hold like 99% of the BTC in circulation. This is only natural due to funds being held in custodial services. It will get even worse for dogecoin in due time after the bull season I think.
Wrong. First of all, around 20% of the coins are lost, so your 99% figure is even theoretically not possible. And even in 2014, the distribution of coins were not skewed, as seen from the leaked data of Mt Gox. On top of that, nowadays a large amount of BTC is being held by institutions, which means that who ever owns shares in these institutions indirectly own BTC. And finally, the entry of PayPal has made it possible to invest small amounts ($50-$100) in Bitcoin without going through the rigorous KYC process associated with various exchanges. This has also made sure that small-sized holders now own a considerable fraction of the circulating supply.