According to the latest news, after hitting an all time high, meme based cryptocurrency, Dogecoin fell 15.4% to %0.33 (around INR 25) on Tuesday.
Note that when it was soaring, its market capitalization increased more than $50 billion (around INR 3,77,350 crores). As per coinmarketcap.com, after the slump, its market cap dropped to $45 billion (around INR 3,39,610 crores). It is not worthy that Bitcoin has a market cap of more than $1 trillion (around INR 75,46,990 crores).
In social media platforms like Twitter, Reddit, and TikTok, Dogecoin fans used the hashtags like #DogeDay and #DogeDay420 to post related memes.
This year, the price of Dogecoin increased 8,000 percent. It eventually overtook more widely used cryptocurrencies like Litecoin and Tether. This way, it became the sixth largest crypto coin.
Edward Moya, senior market analyst at online FX trading platform OANDA said, “The current retail fervor probably won’t completely give up on Dogecoin.” He said he anticipated the “sell the event reaction” of the coin.
Dogecoin comes with a Shiba Inu meme dog logo. Dogecoin can be traded on crypto exchanges on popular mainstream trading apps.
Last week, Diana Biggs, CEO of crypto start-up Valour said “The Doge rally represents an interesting convergence.” after the cryptocurrency soared by more than five folds. She said, “A meme coin created as a joke for early crypto adopters whose community found that kind of thing to be fun, with now a new generation of retail investors for whom memes are a native language.”
Mainly, the pandemic played a major role in the rise of Dogecoin. Millennials being stuck at home with extra cash joined online trading. Trading apps like Robinhood fueled social media driven rallies like that of GameStop stock.
Ajit Tripathi, the head of institutional business at decentralized finance startup Aave said, “It’s an extension of the same phenomenon that has led Tesla stock to be valued well beyond fundamentals and more recently to the GME (GameStop) short squeeze.”
Dogecoin’s price has been heavily influenced by social media users. Tesla CEO Elon Musk also played an important role. According to betting aggregators US-Bookies.com, as of now, Dogecoin has a 16.7 percent implied probability to be worth more than $1 by the end of this year. It is a significant improvement from an earlier prediction of 2.9%.