The first and leading meme cryptocurrency has gained lots of fans and support over the years since it was created as a parody during the emergence of Bitcoin.
After attaining its all-time high last May, Dogecoin has consistently struggled to regain its previous value, as evidenced by the rise and fall of its price in recent months.
Many concerned members of the strong Dogecoin community are concerned about the continuous price fluctuation in the value of the DOGE and whether the popular meme token can bounce back.
However, this does not take away the standing of the meme cryptocurrency, as the CoinMarketCap data shows that Dogecoin is still among the top 15 performing cryptocurrencies as it comfortably occupies 12th place.
The negative aspect of the performance of DOGE is that it is one of the top crypto assets whose value continues to plummet consistently.
DOGE Driven by Speculation
The history of Dogecoin is known as a joke, created by the founders to counter the rise of Bitcoin then, but investors saw something unique about the meme token, and so they took a plunge, which gave them massive returns.
One of the many criticisms of the meme cryptocurrency is that its value is driven by the words and actions of Elon Musk, who happens to be its biggest supporter.
The Tesla boss often took to his Twitter account to tweet on events and happenings surrounding Dogecoin and, in most cases, openly expressed his support for the DOGE. Besides, most of Musk’s comments tend to drive the price of Dogecoin up, and this is true most of the time.
On the other hand, unlike the structures of Solana, Cardano, and Ethereum, which have in place blockchain technology networks that drive the market performance of their respective native tokens, Dogecoin’s market performance is driven by only coin adoption and speculation from influential individuals and businesses.
Dogecoin’s Rise To Prominence
The year 2021 will be unforgettable for all stakeholders related to the meme cryptocurrency. The year that Dogecoin reached an all-time high pushed its value up and provided investors and traders with much more gains.
Since attaining the previous high in May 2021, Dogecoin has lost more than 70% of its value, dropping down to trading at $0.1715 toward the end of last year.
The beginning of 2022 brought a shining light for the DOGE, as the meme token follows a similar path to Bitcoin by confirming its price relative to the market recovery.
Important personalities like Elon Musk also contributed to the acceleration in value for Dogecoin, as his previous tweets have driven its price significantly up. Another factor is the huge following the meme coin enjoys on Twitter and Reddit.
Institutional adoption of Dogecoin as payment played the biggest role in its relative rise in the previous weeks, with many businesses announcing their adoption of DOGE as payment.
In the coming years, it is expected that more businesses will adopt the use of DOGE in payment for their services.