Why is Dogecoin still attracting looooong hodlers?

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OGE’s price has increased by more than 140 percent in the last 24 hours, and the altcoin is actually ranked seventh in terms of market capitalisation. The value of perpetual swaps has reached a record high of $36.99 billion, up 1877 percent since April 12, and all Dogecoin HODLers are profitable at the current price.

 

The key question for retail traders is whether this is a sign of speculation or leverage. Retail traders are optimistic during the current altcoin boom, and top altcoins are overleveraged. In the case of DOGE, fewer than 12% of HODLers who kept DOGE for less than a month are profitable, as are HODLers who held DOGE for a year or more.

DOGE is distinguished from other altcoins by the fact that 61 percent of DOGE HODLers have owned the coin for more than a year. This is obviously not the case for the majority of the top altcoins, which deliver double and triple digit returns. Most altcoins have a strong short-term ROI but a low long-term ROI, but DOGE is the polar opposite. When it comes to altcoins that are pumping, the risk-reward ratio can be twisted and out of whack. The fact that DOGE has a higher market capitalisation than Tesla on a constant basis for over a year shows that the price isn’t being driven by speculation.

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DOGE’s price has risen from $0.07 to $0.34 since April 13, 2021. The map below depicts DOGE’s short-term ROI.

 

Is DOGE's price rally a speculation or here to stay

DOGE Short-term ROI || Source: Messari

According to the above table, DOGE has a higher short-term ROI than the other top altcoins. DOGE’s long-term ROI has been pessimistic in previous years. However, unlike DeFi tokens and other altcoins, DOGE has made a comeback after Bitcoin’s rebound in 2020 and Q1 of 2021.

DOGE demand may have been motivated largely by early hype from Elon Musk and Crypto Twitter, but recent market movement and metrics have transformed DOGE’s price surge into a sustained one. The most intriguing aspect is that DOGE’s present association with Bitcoin is less than 20%. Despite this, as Bitcoin rises, DOGE rises with it, along with other top altcoins.

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