DOGE or Dogecoin is the first cryptocurrency created as a joke and gained a lot of traction over the past year. However, after achieving new all-time highs, the token continuously loses its price value. Following the plunge in the price of Dogecoin, many are concerned about why it is continuously plummeting and whether the cryptocurrency will ever be able to gain back its momentum.
According to data from CoinMarketCap, Dogecoin is currently among the top 15 largest cryptocurrencies in terms of market cap. However, it is the only crypto asset falling faster than any other assets on the list.
DOGE only acts on celeb wordings
Dogecoin began as a campy, dog-themed clone of BTC, but the token delivered seriously impressive returns for investors who got in before its massive pricing surge.
Over the past year, we have witnessed how Elon Musk has been a DOGE holder’s best friend amid the GameStop frenzy. The CEO of Tesla hinted and directly expressed support for the token through Twitter messages and other channels. Besides, Musk’s comments have also frequently powered impressive gains for the meme coin.
While Ethereum, Solana, and Cardano have underlying blockchain service networks that help shape the performance of their respective cryptocurrencies, the pricing drivers for Dogecoin are currently limited to coin adoption and speculation.
Dogecoin growth
2021 became, without doubt, the first-class 12 months for Dogecoin to date.
It changed into buying and selling at $0.007 in January and went directly to hit an all-time high of $0.7381 in might also. However, it has lost about 70% of its price and turned into buying and selling at $0.1715 on the give up of 2021.
The meme coin has won vastly since the beginning of the year. DOGE accompanied bitcoin’s bullish run. Outside elements, specifically crucial opinion leaders (Kol) and influencers, contributed notably to the proliferation of value. For instance, tweets from Elon Musk and the snoop canine of the biggest Kol impacted the boom of the doge network. Presently, the meme coin boasts a big following from Twitter and Reddit.
In 2022, it’s far probable to enjoy extra growth, with institutional adoption and recognition by using outlets. Tesla has mooted accepting doge as a charged alternative. Buyers like Mark Cuban have invested closely in Dogecoin. The investor owns Dallas Maverick, which accepts Dogecoin for tickets and merchandise. Some of the community individuals suggest using the meme coins for decent tubs. With growing user instances, the rate of Dogecoin is ready to skyrocket.
Dogecoin has very few utilities. Its boom will notably depend upon whether or not the influential figures will keep aiding the meme coin. A tweet from Elon Musk in the next 12 months could spring up the dogecoin fee at the start of 2022. Different magnificent supporters like Simmons will have huge impacts on how the joke coin will behave this year.
However, like every meme-coin, the growth of DOGE will entirely depend on the media attention and hype as it generally lacks a robust foundation.
Dogecoin has few rooms to grow
DOGE may have commenced as a joke, but it skyrocketed in price and popularity last year. There’s now a push to utilize its tremendous brand recognition. One way to do this would be to establish it as a payment method for day-to-day goods and services. Bitcoin of America’s move to include DOGE is another step in this journey.
DOGE is the pioneer joke coin boasts a massive following of the enthusiastic network. Last year, the price of the meme coin rose and touched new highs thanks to an endorsement from Mark Cuban, Elon Musk, and Snoop Dogg.
However, it has shed most of its cost in the direction of the late last year and is now trading in an area of the hobby. It’s far not going that the coin will move any lower. Dogecoin Foundation has lined up new projects on the way to beautify its utility and ultimately boost its value.
If the market changes to a bullish outlook, we ought to see Dogecoin at a brand new market high that could be as excessive as$1.
Source: https://www.thecoinrepublic.com/2022/03/25/why-is-doge-dropping/