TL;DR Breakdown
• The Dogecoin spike was due to Elon Musk and Mark Cuban speculation.
• The cryptocurrency is trading between $0.25 after reaching its all-time high of$ 0.75.
The cryptocurrency inspired by a meme reached its all-time high a few months ago but is now falling. In a boom, the cryptocurrency went from being worth half a penny to $0.72, corresponding to an increase of 14,300%.
The high peak is in the past, and for now, the cryptocurrency has not stopped losing its capital. DOGE is capitalized today between $0.25, close to its official value at the beginning of the year. Many investors wonder if it is the right time to trust Dogecoin or they have to forget about crypto forever.
Dogecoin: A cryptocurrency that was born as a meme
In 2013, two software engineers created a cryptocurrency as a joke inspired by the Shiba Inu meme. This virtual asset did not significantly change from the other cryptocurrencies, so its creation was not considered initially. However, over the years, the DOGE scheme has been a Bitcoin transactions optimizer.
Dogecoin can handle 40 transactions per second and over 50,000 movements a day. This would show significant progress against legendary cryptocurrencies like Ethereum and Bitcoin. But, unlike featured tokens, DOGE does not have a vast capitalization that attracts investors.
The only problem that DOGE presents versus Ethereum, for example, is that it has no real utility. But Ethereum is used for smart contracts and thousands of new technologies inspired by its protocol.
True DOGE fame
Considering that Dogecoin is a low-cost cryptocurrency without a goal, the investor will wonder about its fame. DOGE increased in value due to Tesla CEO Elon Musk’s speculations. With a few tweets talking about crypto, it was more enough for its value to skyrocket.
But Mark Cuban also spoke about investing in the crypto meme. The cryptocurrency has been placed in the top 10 favorites with these two great promoters in the virtual market. However, with the downtrend, DOGE loses that position.
If you wonder if invest in DOGE when it is in decline, it may not be recommended. Elon Musk has shown little interest in crypto, and this is because he does not have clear objectives yet. DOGE was only a cryptocurrency at the moment that rose in value on speculation and collapsed when it began to be ignored.
Besides DOGE, Shiba Inu would correspond to an alternate cryptocurrency that has gained value. However, this token may be the same as DOGE, even though it is now rising. It is a high-risk investment with DOGE; it does not offer many upside guarantees like Bitcoin, Ethereum, or Litecoin.
