Dogecoin, currently the 10th most valuable cryptocurrency with a market capitalization of more than $28 billion, has gained great popularity this year.
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Although it has actually existed since 2013 and was originally created as a joke, it was not until the beginning of this year that meme sharing and meme coins became very popular, largely due to social networking.
By the time Dogecoin reached an all-time high in May, it had reached an incredible 14,000% by 2021, with a market capitalization of more than $ 85 billion. However, since its peak in May, the meme coin has sold more than 70%. Even at this low price, this is not a bad sign for Dogecoin. Cryptocurrency is primarily the payment currency used for tips. This is a market with strong competition. In addition, the basic technology is also not good. But in addition to all the reasons why Dogecoin does not offer so much potential, the numbers show that it has also failed.
Is it the end of dogecoin? There are several key metrics that characterize Dogecoin and its network can quickly lose its advantage. Only 9% of holders have bought in the last month, and the volume of their trades continues to decline. At the height of the dogecoin rally earlier this year, the cryptocurrency was constantly experiencing times when its 24-hour volume exceeded $ 20 billion and reached up to $ 67 billion at one point.
In recent weeks, however, the volume has not only been low, but also slowly declining, barely breaking $ 2 billion.
Another reason why Dogecoin hasn't been doing well lately is the rise in popularity of the Shiba Inu token. Dogecoin is the currency that runs its own blockchain network, and Shiba Inu is the symbol of Etherea Blockchain. Therefore, these two properties are very different.
However, as these are the two most popular meme coins, the decline in dogecoin may be due in part to the increase in popularity of Shiba Inu in recent months. But even now, the meme token has also lost its momentum.
Forget meme coins
With all the potential that the cryptocurrency and blockchain industries offer investors in the coming decades, there is no need to speculate on riskier assets just because they are now coming together. If you are looking for cryptocurrencies that you can confidently develop in the long run, you should be more patient. And with all the potential and innovation going on, you probably won't have to stop for a long time.
Every day, investors have new opportunities to consider, and if you tie your capital to a speculative asset such as dogecoin, you risk not only losing money but also potential loss.
There are many more quality cryptocurrencies, such as Galaxy Digital, that offer investors potential. And as I mentioned, constant innovation creates new opportunities every day. So if you've come to the cryptocurrency industry to make significant profits, you've come to the right place. However, to maximize their potential, it pays to find cryptocurrencies and projects that have a solid foundation and many reasons why their value may increase in the coming years.