The cryptocurrency bull run of 2021 wasn’t what many people had predicted. Following a harrowing year for the economy, and many people losing their livelihoods, who would have thought that a meme coin like Dogecoin would become one of the most talked about and profitable investments of the 21st Century?
It’s a strange world we’re living in. Cryptocurrency purists were left tearing their hair out as Dogecoin ripped through its all-time high price almost daily. It was a perfect storm for Doge.
Why Did Doge Pump?
It embraced the full wrath of Chief Tweet Elon Musk, propelling it to astronomical heights every single week. Combine this with a tsunami wave of retail investors and Bitcoin going on a bull run which naturally dragged the entire market up with it anyway.
The rise of Bitcoin was helped by colossal news. El Salvador made it a legal currency, Elon Musk said he has the digital asset on Tesla’s balance sheet, and Blackrock increased its holding. You could even start using cryptocurrency in casinos to place a bet! If you’re partial to digital gambling, the eSports market is a vast market that has opened up. You can find all the markets and the latest esports odds here: https://thunderpick.io/en/esports/dota-2
However, do make sure that whenever you gamble, you are doing so for entertainment. If you begin to chase losses or start seeing gambling as a form of income, you must stop immediately and speak to somebody who can help you control your gambling problem.
Has The Doge Rocket Lost Its Engine?
The foundation was perfect, and the Doge plane took off from the runway in 2021.
However, following what can only be described as a cryptocurrency apocalypse in 2022, no digital asset avoided the deadly wrath of the bears. If we’re brutally honest, Dogecoin doesn’t have much utility and other than a total tsunami of hope, there wasn’t any practical use.
In May 2021, it peaked at around $0.46 – an astonishing figure for a token with such a gigantic supply and market cap.
This was incredibly short-lived, of course, and once the crypto bears came for Doge, it was brutal and sharp. It now frequently trades at less than $0.09, which is a 75% drop in price. Although there have been small dips here and there, it is a stagnant altcoin, and it looks like it has had its day.
Can Doge Rise Again?
Except for a few cryptic Elon tweets, the hype train for Doge has slowed to an almost grinding halt. However, one key event that stands out was when Elon finally took over legally at Twitter, and Dogecoin soared 40% in price.
Many Doge enthusiasts dream of the day that Elon says you can use Doge for payments on Twitter. Although he may have flirted with this idea, the practicalities of using Doge as a payment method on a powerful global platform like Twitter are highly unlikely.
Although he has hinted he may use Doge to fight spam bots on Twitter, nothing of any substance has been launched by the South African business magnate.
The current attitude from regulatory bodies in the United States is frosty. The head of the SEC, Gary Gensler, who Elon Musk isn’t a fan of, has launched a series of lawsuits against prominent companies and individuals within the space.
It seemed to start with XRR back in December 2020, but it has ballooned into a much bigger attack on cryptocurrency. Although some of these lawsuits are understandable, such as his pursuit of Do Kwon, many seem misguided and poorly judged.
For Dogecoin to take off back to even 50% of its all-time high, it needs big news and a positive market sentiment driving the price action. During its peak, it had all of the components we discussed earlier. Ultimately, Bitcoin will need to get back above $30,000 before anybody even talks about the possibility of any altcoin getting near its all-time high again.
Some positives have been highlighted by a few people in the cryptocurrency space. China has recently pumped vast amounts of money into their economy, which could trickle down into the cryptocurrency market. If America can avoid a recession and the economic landscape begins to improve, the rise of Dogecoin has ticked a few boxes.
However, it needs a big move from Elon to send it. If he says Dogecoin will become currency on Twitter, or he will utilize the digital asset for a real purpose, alongside the other variables, Doge could rise again.
Other components, such as XRP winning the case against the SEC, will also drag the market up. Dogecoin needs several of these things going in its favor before we see the moon again, and the chances look slimmer every day. Sorry to disappoint!