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Is the DOGE saga coming to an end?
Dogecoin, the cryptocurrency that was created as a joke but is now regarded a real asset by its rising number of holders, is in trouble. Despite being listed on Coinbase last Thursday, the meme cryptocurrency has dropped by more than 20% in the previous week.
Meanwhile, the larger cryptocurrency market, powered by Bitcoin, looks to have levelled down following a turbulent few weeks. Over the previous week, Bitcoin has traded sideways, with support remaining over $35,000.
According to CoinGecko statistics, Dogecoin is now selling for $0.31. Coinbase, the largest cryptocurrency exchange in the United States, said last week that it will offer the coin. Following the first announcement, the price of Doge swiftly increased, but did not significantly change when trading became available days later.
Even when the San Francisco-based exchange announced a $1.2 million giveaway of the currency “to celebrate,” its price remained stable. But only for a short time; it has already sunk.
The “Coinbase effect” looks to be no match for the “Elon Musk effect” these days.
Musk, who years ago called Dogecoin his “favorite” cryptocurrency—and even jokingly accepted the title of “Dogecoin CEO,” has a habit of moving the crypto market with his tweets, especially Dogecoin and Bitcoin.
And, though neither is doing especially well right now, Dogecoin, whose token economics allow 10,000 coins to be added to the network every minute, is faring far worse: the cryptocurrency has lost 2.5 percent of its value in 24 hours. Because so many coins are generated so fast, the crypto is reliant on being purchased.
Bitcoin, on the other hand, looks to have rebounded from a period of adverse mood that lasted several weeks. The largest cryptocurrency by market size was pummelling first by Elon Musk tweets criticising the coin’s energy use, followed by a massive sell-off after China’s central bank and a handful of Chinese payment processors announced plans to kerb crypto transactions. On May 19, it plummeted by 30% in only 24 hours.
It then suffered when US officials stated at the start of this week that they had recovered $2 million in Bitcoin from a ransomware assault on the Colonial Pipeline, causing another sell-off.
However, Bitcoin is now selling around $37,000, almost where it was seven days ago. While this is bad news for holders, it may be a sign that the tide is turning.
In comparison, Ethereum, the second-most valued cryptocurrency by market cap, has struggled over the last seven days, losing more than 15% of its value and trading at $2,413. ETH was on the verge of breaking above $5,000 not long ago.
And, though some new market participants may have anticipated Dogecoin to do better, especially given that it is now listed on America’s largest exchange, it has arguably already outperformed: it is already the sixth largest cryptocurrency, with a market worth of $41.4 billion. Not bad considering it was created as a prank in 2013.