When one thinks about Dogecoin, the first thing to come to mind is a community hyped dog, placed on the face of a coin as a joke, perpetrated to become a worthy cryptocurrency by Elon Musk.
Well, now at least one of those things is vanishing thanks to Dogecoin itself.
Dogecoin hurts its own people
Dogecoin continues to bear the brunt of the market as the altcoin lost 26% in the last month, which dragged the price down from $1.729 to $1.276.
Consequently, about 40k investors left the market and their support for the coin over the last ten days.
This is not the first instance where DOGE has lost price, and neither is it the first instance where it has lost investors, as back in March, more than 700k investors quit Dogecoin as prices bottomed at $0.11.
This behavior is establishing a harmful precedent for Dogecoin as the breaking community will continue to disperse until the meme coin king can give the investors something worthwhile to retain them.
The waning confidence in the cryptocurrency is backed by the fact that in the last year, Dogecoin’s daily transactions, which used to average at 60k to 70k, have reduced to just 22k.
This time last year, DOGE was at its peak both in terms of price and investor activity.
The altcoin was rising in popularity and demand on the back of its community alone, even before it received the support of the DOGEfather.
Now even though Elon Musk continues to advocate for the meme coin, the widespread adoption of crypto has educated individuals and made them realize what actual utility Dogecoin brings – which is nothing.
Apart from being a method of payment, which is not available everywhere either, Dogecoin does not have tools yet to facilitate the rapidly expanding demand for Web3. Without Defi, DOGE will cement its reputation as a joke of a cryptocurrency that it initially started out with.
Even though the network tries to build itself, the broader market invalidates the efforts, leaving the community dejected, which is how despite showing optimism every now and then, investors aren’t able to hold it for long, and their current sentiment towards the altcoin remains negative.
At the same time, except for moments of price rallies, Dogecoin’s social dominance is also meager. At one point, Dogecoin used to dominate 12.3% of all crypto-related social media actions, which towards the end of March reduced to 1.2%
Furthermore, after enduring a negative market value for five months straight, it becomes apparent that Dogecoin has very little to offer its investors and drive them towards it.
It might need a little more than just a pat on the back from Elon Musk to establish a long-term presence in this space.