Dogecoin has been in the spotlight of the cryptocurrency community for a long time. For most of 2021, interest in the meme dog coin hasn’t subsided. At the suggestion of the head of Tesla and SpaceX Elon Musk, DOGE was at the center of discussions. At the time of the peak price in May, its value has risen by 15,000% since the beginning of this year. This result became possible due to the rapid growth in the price of the leading asset Bitcoin.
After reaching its peak value in May, DOGE plummeted in price. Dogecoin’s valuation has dropped more than 60%, and so has its media presence. Casual Internet users with no deep knowledge of digital assets have turned their attention to other things. At the same time, analyst under the pseudonym Tyler Durden believes that the coin will soon fall by another 60%. If you look at Dogecoin (DOGE) charts from a financial analyst’s perspective, you may notice the alarming presence of a classic bearish structure. “Even Elon [Musk] can’t save this with his tweets”, he said. “Expect Dogecoin to drop to $ 0 this year and slowly die”, predicts an “Asian investor”.
The fall in popularity of Dogecoin
Along with the decline in price and popularity, people mention DOGE less and less on Twitter posts. For more than a month, the token hasn’t surpassed the number of mentions of Bitcoin in the social network. Earlier flirting with a token from billionaire Elon Musk led to the fact that DOGE was mentioned more often than the flagship crypto asset. At the end of January, Reddit traders chose Dogecoin as the cryptocurrency equivalent of GameStop. So, the token slipped on tweets the most. After Musk published a meme with the word Dogue as a modification of the name of the fashion magazine Vogue. As a result, mentions of the token increased by 300%. By comparison, the record for mentioning Bitcoin was 196,000 times in the records, and Dogecoin 944,000 times. Ultimately Dogecoin returned to its place and was no longer able to outperform Bitcoin on social media.
Interest in DOGE is gradually cooling down
Taking a look at the blockchain statistics, we can see that some statistics on Dogecoin usage have fallen even beyond the recent price crash.
Dogecoin’s daily transactions recently hit an almost three-year low of less than 20,000, last seen in the fall of 2018, according to analytics service Bitinfocharts.
This year, DOGE has become a toy in the hands of cryptocurrency whales. Because of this, it was regularly subjected to sharp fluctuations in transactions, fees, and the value of the currency carried through his blockchain. However, now the information background around the token has decreased and interest has fallen. Users are likely losing faith in Dogecoin as a fully functional cryptocurrency.
Although the interest of the crypto community in the token is still showing, it is unlikely that it will flare up again in the same size. Recently, an NFT featuring Shiba Inu’s Dogecoin was sold for $ 4 million in ETH, but that popularity is no longer there. Dogecoin is unlikely to be revived in the coming months or years.