Dogecoin started the year at $0.0025, and the price grew to $0.74, an astounding return of 29,600%.
The prevailing market conditions are incredibly risk for holders of meme projects like Dogecoin.
Within a month, the price has crashed by more than 70% in what appears to be a bubble burst.
Share this article
Amid Bitcoin’s ongoing correction, Dogecoin is crashing at a far quicker pace in what looks like a bubble that has burst at last.
Demise of Dogecoin
China’s recent restrictions on Bitcoin mining has caused turmoil in the market. Since the last month, the overall crypto market has lost almost half its value, coming down from $2.5 trillion to now $1.3 trillion.
The prevailing market conditions may even be worse for holders of popular meme projects, that are perceived to be of now value other than their comical nature. Let’s look at the father of all meme coins, Dogecoin which is losing its billions market capitalization each week.
Looking at the $doge price right now and we still have like 19,000% to go. Very bearish, but I can’t bring myself to sell in this range, so I’ll just keep DCA’ing into projects with real fundamentals.
— αlphα better (@_neostradamus) June 22, 2021
Dogecoin started the year at $0.0025, and the price climbed as high as $0.74 per coin on May 8, an astounding return of 29,600%. In other words, if you had invested $1,000 in Dogecoin on Jan. 1, it would have turned into $296,000.
But the Dogecoin bubble finally seems to have popped. Since May 8, the price has crashed by more than 70% and is currently trading at $0.19, as per CoinGecko.
According to many financial analysts, Dogecoin’s ascent was driven by hype and support from tech billionaire and CEO of Tesla Motors Elon Musk. Musk, who is considered by many a tech thought leader expressed admiration for the meme coin with his 57 million followers.
This was the catalyst for the 2021 Dogecoin mania that followed.
Really was such a prescient meme. pic.twitter.com/iuneAUJCss
— Autism Capital 🧩 (@AutismCapital) June 22, 2021
The coin also received endorsement from rock musician Gene Simmons, rapper SnoopDogg, and hundreds of social media influencers, all of which further boosted its popularity among novice investors.
Amid this growing traction, WallStreetBets, a well-known subreddit dedicated to investors, hopped onto the Dogecoin bandwagon. This caused a crowd pump campaign, a collaborative effort to elevate Dogecoin’s price similar to the orchestrated pump of GameStop (GME) stock earlier this year.
On May 8, Dogecoin’s attained its all-time high price of $0.74, the the very same day when Musk promoted it during his SNL appearance.
Currently, the coin continues downward movement within a clear descending triangle and changing hands far below its 200 day simple moving average (see chart above). If the decline picks up, the coin may well be heading towards its long time critical level around ~$0.08.
Doge’s supporters are optimistic about the project’s perceived utility in payments as well lower transaction fees in comparison to Bitcoin and Ethereum. In fact, sport teams like NBA’s Dallas Mavericks and MLB’s Oakland Athletics already accept dogecoin payments for tickets to their games.
Despite the massive decline in Dogecoin since its May peak, the cryptocurrency is still up more than 7000% year-to-date.
Doge’s current market capitalization is ~$23 billion which places it in the top 10 coins. DOGE is ranked ahead of crypto projects such as Chainlink, Solana, and Polygon, despite the greater utility offered by these projects in the decentralized application space. For a project that launched as a joke, Dogecoin has accomplished great feats.
However, it is evident that celebrity endorsements coupled with a crowd-led pump was the prime catalyst for the rise in DOGE price. As a result, unless the coin gets more celebrities and influencers to promote itself, the road to higher price points looks murky at best.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Bitcoin Falls Below Key Support at $30K, Dragging Alts Lower
Bitcoin has slumped below $30,000, a crucial level of psychological support that will likely have a major impact on sentiment. BTC Dominates the Market Bitcoin is now trading in the…
Cardano Leader Calls Dogecoin Bubble Dangerous
Charles Hoskinson, creator of Cardano and CEO of IOHK, has criticized Dogecoin’s rapidly rising market value. Hoskinson Says Prices Are Unsustainable Continuing on from its recent price performance, Dogecoin has…
What is Polygon (MATIC): Ethereum’s Internet of Blockchains
In terms of both decentralized app (DApp) development and adoption, no blockchain has been more successful than Ethereum (ETH). But despite its relative success, the Ethereum network still contains several…
Crypto Market Tumbles After Tesla Halts Bitcoin Payments
Tesla’s Bitcoin U-turn sends crypto assets tumbling. Tesla Halts Bitcoin Payments Tesla will no longer accept payments in Bitcoin, Elon Musk has announced. The self-described “Technoking of Tesla” took to…
After Robinhood Blunder, Blockfolio Will Pay Users Dogecoin for Tradin…
Thanks to an integration with the cryptocurrency exchange FTX, Blockfolio users will now access zero-fee trading and token bonuses. Blockfolio Supporting Crypto Trading Blockfolio now supports crypto and stock trading….
All Dogecoins Go to Heaven: Crypto After You Kick It
Ripple just lost half a billion dollars in market cap, at least until someone finds Matthew Mellon’s key. The unexpected death left hundreds of millions of dollars in blockchain limbo,…
Binance Adopts Dogecoin Because Why Not
Whenever exchanges list a new digital asset, they typically go into detail justifying the decision and the potential value the coin could bring to their users. But it seems that…