If Dogecoin is no longer Musk’s puppet, what is it?
Dogecoin – the leader of the meme-coin pack – has been in the middle of a deadlock over the past few days. The beleaguered sixth-largest crypto’s price was oscillating around the $0.2-range at press time, with the usual euphoria and excitement in the DOGE market seemingly dwindling.
At the time of writing, DOGE was trading at $0.2405, after registering a 3% drop over the past week. However, the meme-coin’s price has risen by 10,472.48% over the past year. Ergo, keeping DOGE’s past price actions in mind, the 3% drop can seem trivial.
However, looking at the overall picture, certain questions do arise. Has DOGE lost its charm and appeal? Is its bubble set to burst anytime soon? Has the community given up on the coin already? Even though the emerging trend does seem to be that, the same cannot be said with any absolute surety.
The mutual interdependence of Dogecoin’s price and social volumes has been dwindling since mid-May. In fact, the latter has remained mostly stagnant over the past few days. Additionally, when compared to the month of May, Dogecoin’s social dominance has also drastically shrunk.
All in all, social media has failed to provide the “joke-coin” any relief. Dogecoin also withdrew itself from market-centric developments and prolonged its monotonous mood. The same became even more prominent after Coinbase’s latest listing. In what was an unlikely scenario, this development failed to provide DOGE any relief.
Additionally, at the time of writing, IntoTheBlock’s data underlined that the market sentiment towards DOGE was “mostly bearish.” Unsurprisingly, the average transaction size also showed a massive drop from $1,684,809.74 towards the beginning of June to $90,497.08 at press time.
What’s more, DOGE’s average balance also dropped from the $23k range in May to the $7k range. Its trade volumes did not reflect any impressive figures either. In spite of this humdrum and dull environment, however, brokerage firm Robinhood recently announced that 34% of its total crypto revenue in Q1 came from trading Dogecoin.
Well, while Dogecoin may have been a good Samaritan for its investors, of late, it hasn’t been doing too well. With Q1 already over, are DOGE’s high-performance days a thing of the past too?
Now, one analyst has claimed that Dogecoin has already entered the fourth stage of its bubble and the odds of a “total loss of capital” remain fairly high. In fact, he also warned investors to remain cautious and opined,
“Expect Dogecoin to fall towards $0 this year and die a slow death.”
Arguably, no recent development has provided DOGE any reassurance of an uptrend, not even Elon “the catalyst’s” tweets. The joke-coin that used to love dancing to Musk’s music in the short run has ceased to do that too. Perhaps DOGE is not anyone’s puppet anymore!