With an $8.2 billion market value, Dogecoin (CRYPTO: DOGE) is the tenth-largest cryptocurrency in the world. That’s a fairly remarkable accomplishment for a meme token that was initially made as a joke.
Nevertheless, it has substantially lost much of its value, similar to many other tokens. DOGE, which peaked at a price of $0.74 per token at the height of the crypto craze last year, has subsequently fallen to as little as $0.05 a token this year. From its top, where Dogecoin is presently trading, that is a fall of more than 90%.
Where is this token going from here? Is the current concern shared by many investors? Is this dog-themed token due for new all-time highs? Or might there be a further 90 percent collapse after this?
Let’s start now.
Dogecoin: The Elon Musk token
It is indisputable that Elon Musk, the CEO of Tesla, significantly influences Dogecoin’s price movement. Dogecoin frequently fluctuates by double digits with only one tweet, favorable or negative. Investors in this meme token keenly monitor Elon’s statements, given his generally favorable support for Dogecoin.
This assertion has been supported by a number of events that have happened this year. This can undoubtedly offer speculators a valuable item to trade.
For longer-term investors, it may be concerning that tweets can consistently and to such a great extent change the value of a particular asset. This entire situation might collapse with the single Musk tweet criticising support for Dogecoin.
In fact, there is a high risk with trading this crypto. Most investors already know this is the case.
But there are Catalysts
The recent news from Coinbase that Dogecoin will be accepted as payment for the company’s commerce solutions is one of the more intriguing triggers that have occurred. The goal of Coinbase Commerce is to connect companies and customers in the cryptocurrency market. As a result, it is incorporating new cryptos as payment choices while also facilitating and facilitating cryptocurrency transactions.
The variety of choices presented includes additional digital tokens. However, the inclusion of Dogecoin is significant for owners of meme tokens.
That’s mostly because this token doesn’t have many additional uses. This coin has recently been affected more negatively than the market as a whole by a dearth of practical use cases. Consequently, if additional mergers occur, investors could have more catalysts on the horizon to look to.
To Sum Up
Dogecoin is without a doubt one of the most speculative assets available to investors at the moment. There are certain catalysts, to be sure. However, this token’s long-term course truly depends on variables outside of Dogecoin’s control. As a result, this item does not satisfy my requirements for a possible holding.