Evaluating DOGE’s fate as new memecoins try to steal some limelight
- At the time of writing, Dogecoin faced this challenge as new memecoins came into the fold.
- First-mover advantage and a shift towards payments constitute Dogecoin’s arsenal.
Will Dogecoin retain its crown during the next major bull run? There was a surge in memecoin hype in the last few days, but OG memecoins barely received any attention. That is because newer memecoins such as PEPE have been stealing the spotlight.
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Dogecoin enjoyed dominance in the memecoin segment during the last bull run. Its first-mover advantage was a huge plus that contributed to its hype at least until Shiba Inu came to offer a challenge.
Fast forward to the present and now other upcoming memecoins are enjoying hype in their newness. As a result, it is important to analyze Dogecoin’s current stand and what the future has in store.
Unfortunately, we do not have a crystal ball to look into the future. What we do have is a set of facts and observations that may help gauge expectations. For example, memecoins are mostly driven by initial hype. DOGE may have already exhausted its hype hence why other upcoming memecoins are enjoying all the attention.
Dogecoin still has some chips on its side
Dogecoin also lacks special use to drive organic utility. However, this brings us to another point that may underscore DOGE’s strong points. It has been trying to expand beyond its memecoin status and into payments.
Attention all #DOGEARMY! Help us convince @Starbucks to accept #dogecoin! It's time to show them what we're made of 🐶☕ And don't forget you can get 3% back in doge rewards if you use your #DogeCard at #Starbucks.#StarbucksxDogecoin #ToTheMoonAndBack pic.twitter.com/bU2gCTEGfi
— The DogeCard (@TheDogeCard) April 25, 2023
DOGE holders are still holding on to the possibility of Dogecoin becoming the official payment processor for Twitter. It has also managed to maintain a robust market cap despite the heavy outflows during the 2022 crypto winter. Its market cap was slightly over $11 billion at the time of writing.
The fact that it has retained such a huge market cap despite a massive pullback confirmed the power of Dogecoin’s first mover advantage. There are still many investors that still have faith in the coin.
In retrospect, DOGE’s price action has been moving in tandem with the top cryptos such as Bitcoin. This meant there was still a significant probability that Bitcoin [BTC] will recover when the rest of the market turns bullish.
DOGE exchanged hands at $0.079 at press time. Its latest price action indicated seller exhaustion in the last five days after previously experiencing a sizable pullback.
As far as Dogecoin demand was concerned, the total amount of holders witnessed a rise over the last seven days. This confirmed that traders are buying the dip. On-chain volumes also showed signs of rejuvenation after previously dropping to a weekly low.
Realistic or not, here’s DOGE’s market cap in BTC’s terms
In summary, Dogecoin is doing just fine, but it could do better. The dynamics of the next major bull run will certainly be different from the previous one. Competition is one of the major factors to consider.
On the other hand, the competition also has a lot of catching up to do and DOGE is attempting to evolve.