Dogecoin fans on social media were gunning for the cryptocurrency to touch 69 cents or $1 levels this week in anticipation of Doge Day. Surprisingly Instead of flying to the moon, the Dogecoin rocket crashed to the ground. At press time Tuesday night, DOGE was trading at $0.32, down 21.28%.
“The current retail fervor probably won’t completely give up on dogecoin, but a sell-the-event reaction could be in the cards,” said Edward Moya, senior market analyst for Oanda, a brokerage, CoinDesk reported.
Others think that the fervor is set to continue. “Gaining somewhat of a global cult following, we see little to stop DOGE from continuing to appreciate, at least in the near term,” said Bloomberg Intelligence’s Mike McGlone.
Data from the blockchain network indicates that operation is increasing: According to Coin Metrics, the number of active Dogecoin addresses has reached an all-time high, and transactions have reached a seven-year high. Based on activity on the open-source software silo is the year that project progress on the blockchain has picked up, with top contributions from Bitcoin Core developers.
Is this, however, the end of Dogecoin? Most likely not. Despite the price drop, the meme cryptocurrency has already built a name for itself, clawing its way up from near-zero to create a major impact that marketers and even the general public have noticed. The effect will take time to wear off, and there will still be space for the Shiba Inu currency to rise again.
The DOGE frenzy seemed to have spread to decentralised finance (DeFi) within the wider digital-asset markets, where many imitator tokens have racked up massive single-day gains.
A decentralised experimental token dubbed the “dogecoin killer” that trades on a decentralised exchange Uniswap. The ERC-20 coin, which was released under the Ethereum blockchain’s ERC-20 standard, has risen 95% in the last four weeks, outpacing DOGE’s rally.
Another cryptocurrency, weed doge (WOGE), went live this week, ostensibly to help citizens who have been wrongfully imprisoned for marijuana-related offences. On Monday, WOGE rose 1,058 percent to $0.0950, but was last seen trading around $0.0170 on Uniswap.