Prices of crypto Dogecoin and Avalanche

Lately the price trend of crypto assets Dogecoin and Avalanche has been interesting.

Price analysis of crypto assets Dogecoin (DOGE) and Avalanche (AVAX)

Although these trends follow that of the general crypto market, there are some characteristic elements that are specifically affecting the price of DOGE and AVAX.

The performance of Dogecoin (DOGE)

Dogecoin has its own native cryptocurrency, DOGE, which during 2021 experienced an incredible boom.

Indeed, it is worth mentioning that until 2020 its performance had been disappointing, partly because since it was only a memecoin born as a joke it had never attracted much attention from crypto investors.

This all changed in 2021 thanks to Elon Musk, who recently though, seems to have started promoting another cryptocurrency.

Thus more than what is happening to the price of DOGE, it is interesting what is not happening.

Dogecoin is still the tenth largest cryptocurrency in the world by market capitalization, and it is possible that it could overtake BUSD and move back to ninth place. However, it is being chased by Solana’s SOL, which could also end up overtaking it.

Until 2020, the cryptocurrency price of Dogecoin had always been less than a penny, except on a rare occasion during the speculative bubble of late 2017/early 2018.

However, in early 2021 it began a real climb, buoyed by Elon Musk‘s constant tweets in its favor.

As early as February it had risen to 7 cents, and in April it even surpassed 30 cents.

The all-time high was recorded on 8 May of that year at over 70 cents. In other words, since the beginning of the year it had gained 14,000%.

Not by chance the highest peak was recorded on the day Elon Musk went as a guest on the very famous US TV program Saturday Night Live as “Dogefather.”

Thereafter, the price of DOGE began to fall, until it hit an annual low of 2022 in June, just above 5 cents.

At the end of October, when Elon Musk’s purchase of Twitter was announced, suddenly its price went back up to 12 cents, but after falling in November due to the FTX bankruptcy, it still has not been able to get back to that threshold.

The problem is that Musk has not tweeted in favor of Dogecoin now that he is in charge of Twitter, disappointing many of the expectations of DOGE holders.

For example in these first weeks of 2023 it has gained 22%, compared to 47% for Bitcoin and 39% for Ethereum.

By contrast, with some tweets about his dog Floki, Elon Musk has made the price of the token of the same name take off, so much so that since the beginning of the year it has recorded +550%, with +29% recorded only yesterday thanks to yet another tweet by Musk about dogs.

High time I confessed I let the Doge out pic.twitter.com/TAi4p1khAd

— Elon Musk (@elonmusk) February 22, 2023

The fact that the tweet was not about Floki, but about dogs in general, does indeed make one believe that Musk has stopped influencing the price of Dogecoin, and is instead mainly influencing the price of Floki.

By the way, he is not doing this explicitly, but just probably teasing the community of investors and speculators in these memecoins.

The trend of Avalanche (AVAX)

Avalanche has its own native cryptocurrency called AVAX. Right now it ranks 15th in market capitalization, just behind Litecoin and just above Tron.

Since the beginning of the year, AVAX’s price has already gained 89%, although it is still 86% below its 2021 all-time high.

Indeed, it lost a great deal in 2022 following the implosion of the Terra/Luna ecosystem because there were fears that the Avalanche ecosystem might suffer similarly.

Instead, Avalanche was not seriously affected, but the price of AVAX took a long time to recover.

After hitting an all-time high on 21 November 2021 at $146, it had fallen to around $80 by April 2022. However, with the Terra/Luna implosion, it even collapsed below $15, or a loss of 90%.

In the following months, following the general trend of the crypto market, it fell again, to as low as $11 after the FTX failure.

At that point, by the end of 2022, the loss from the highs had risen to 92%, so as soon as it showed good health, the price made a big rebound, going in 2023 from $11 to $20.

Thus it has not yet recouped its 2022 losses like the major cryptocurrencies, as Bitcoin is at -65% from the highs and Ethereum at -66%, but at least it has climbed out of the abyss it was in because of Terra/Luna.

The current price of Avalanche’s native cryptocurrency is in line with the price at the beginning of November 2022, i.e., before the FTX bankruptcy, and also with the price at the end of June 2022, after the very small post-crash rebound. It should be noted though that it is much higher than the $3 it was before the last big bull run.

Avalanche is a young project, born only in 2020, which in theory could still have a lot to give, especially now that what seemed to be its biggest competitor (Terra) has disappeared.