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The digital currency was borne higher by Americans, but their interest could be dwindling.
It was a Shiba Inu shooting into the sky: Dogecoin’s recent streak will go down in history. Despite the fireworks, social media data suggests that the meme’s run may have come to an end.
The digital currency, which debuted in 2013 and has since been the subject of a slew of bizarre stories and scams, has added another chapter to its sometimes perplexing existence in recent days. DOGE surpassed Ethereum in overall trading volume (doubling, in fact) on Friday, capping a phenomenal run that saw it double in price in a day, capping over 5000 percent returns on the year.
DOGE, on the other hand, is a meme, and memes are propagated and essentially dependent on social media. When the meme is unable to spread, the price will plummet.
At the time of release, DOGE is down 35% on the day to $.26, having fallen from $.40 highs — and social media sentiment data from The TIE and Cointelegraph Markets Pro suggests that more suffering is on the way.
Volume verses sentiment
Google Trends tweeted on Friday about the global search patterns of Bitcoin and DOGE traders. They discovered that, although the rest of the world was based on BTC, American traders were only interested in Dogecoin.
— GoogleTrends (@GoogleTrends) April 16, 2021
This heatmap corresponds to data given by The TIE. Total DOGE-related Tweet volume ebbs and rises as the US sleeps and rises during American daytime hours, sometimes peaking at midday EST, with volume particularly strong when DOGE is rallying:
However, a quick search and Twitter volume do not necessarily indicate a price increase. According to the Google Trends infographic, opinion on a volume boom can be mixed: many of the top search words based on traders attempting to predict how much gas the DOGE rally has left in the tank.
The apprehension has extended to Twitter as well. Although sentiment for the currency was highest during its run to $.16 on April 14th, the “waves” of sentiment matching volume have been diminishing on the run up — while overall Twitter volume peaked with DOGE’s price at $.40, it has been declining for days:
Finally, though volume and sentiment propelled DOGE to new heights, a dramatic price decline seems to be bringing Dogecoin back down to earth.