After hiking by 120% in 24 hours, is this alt the new ‘Dogecoin’ in town
Dogecoin is that teacher’s pet who everyone hates, but still gets favored again and again until they don’t. Such is the case at the moment with the meme coin as DOGE failed to register a decent hike after the broader market’s rally.
When Bitcoin and Ethereum and other altcoins were picking up the pace, DOGE started slowing down. This brings us to the question — Is DOGE losing its sheen and worth? The metrics will help us answer that question.
Can DOGE dodge the fall any longer?
The beloved son of the “Dogefather,” the altcoin always has been a topic of discussion, no matter what. Of late, it is because of its relatively minor hike of 20% in the last 13 days. Minor, because BTC hiked by 31% and ETH gained by 44% over the same time period.
The surprising problem here is that despite having high and rising investor sentiment, DOGE could not deliver as per people’s expectations. Additionally, the altcoin is losing all its profitability as well.
Since the rally of April-May which took Dogecoin to its all-time high, profitable addresses have come down by 11% from 93% to 82%, as of press time. Similarly, daily active addresses (DAA) have fallen severely as well.
This 240k drop in DAA is proof of investors exiting. The sudden boom DOGE witnessed earlier in the year is now coming down. However, even now, whales and long-term HODLers continue to HODL DOGE, with mid-term holders’ participation increasing as well.
Talking about Dogecoin and the “Dogefather” Elon Musk’s influence on the crypto-market, one important observation has come across.
Of late, Musk’s impact on cryptocurrencies has come down significantly. For instance, despite this tweet dated 25 July, DOGE did not witness any rally.
However, a new and bizarre influence might be rearing its head these days. A Dogecoin-inspired coin — Dogelon (God bless us all) — has been making headlines for making crazy gains on its daily chart. The altcoin, which yesterday went up by 120%, also recorded a 1015% surge back in May.
What’s perhaps more outrageous is the fact that its max supply sits at 1 quadrillion (For your reference, that’s 1,000,000,000,000,000). So, even though Musk may not be as influential as he once was, his presence certainly is overwhelming. Simply put, the Tesla CEO’s enthusiasm and promotion of meme-coins may have just spurred the growth of others like DOGE.
What then? Can Dogelon Mars “replace” DOGE? Unlikely. In fact, comparing a $50M market cap crypto with eighth-ranked Dogecoin with $26 billion in market capitalization isn’t fair either.
Then again, who knows. After all, there are few rules when it comes to cryptocurrencies. Even fewer where meme coins are concerned. Think about it — Did anyone really expect DOGE would one day be in the top-10?