The most infamous meme coin in the ever-expanding world of cryptocurrency, Dogecoin (DOGE) just saw a rapid dip and peak within a span of 48 hours. On November 16th, DOGE reported a 60% dip from its strong performance in April of the same year. Two days later, DOGE prices gained a modest but noteworthy 2% spike. This puts it back in the crypto pool as other tokens with rising values, which include the likes of Ether, Binance Coin, and Solana, according to a report from CNN. Despite this promising bounce-back, is this enough reason for investors to put their money in DOGE?
Is DOGE back on top or back to basics?
Rapid dips and rises in a short span of time are not new to Dogecoin. In 2021, after DOGE received mainstream attention from various celebrities like Elon Musk (who famously announced that he supports DOGE above all other tokens), Guy Fieri, and the professional baseball league The Oakland A’s, DOGE’s legitimacy grew. This led to an all-time high value of $0.74 in May of this year. According to a crypto update from Reuters, this made DOGE the 4th biggest digital coin with a market cap of more than $70 million.
However, as is the case for speculative assets, DOGE would soon take a hit. Over the course of a single day in June, DOGE’s value plummeted four-fold due to China’s crackdown on cryptocurrency. In the government’s latest efforts against cryptocurrency, mining and trading were shut down nationwide. Considering that Chinese miners are responsible for almost 70% of global crypto mining, this caused the market as a whole to dip. In DOGE’s case, the token’s value landed just below $0.18. Although this didn’t cause it to fall off investors’ radars, it did take it further from its goal of hitting $1 per token.
The DOGE effect today
Although fluctuations in valuation are to be expected in crypto trading, few tokens are met with as much uncertainty as DOGE. As detailed in a guide on AskMoney about DOGE, this could be because its genesis comes from a famous meme or because it was originally launched as a “joke” currency in 2013. Either way, Dogecoin has often been either heavily underestimated or hyped throughout its existence. This, of course, has not stopped many other crypto founders from taking inspiration from this famous meme asset.
Although Wall Street and old-school investors may not be happy about them, DOGE has influenced several new coins created along the same vein. Other animal-based tokens like CAT and $Kitty Dinger are just a few new names that are already attracting considerable attention. These coins aim to become legitimate forms of currency, though with a more accessible and “playful” approach than industry titans like Bitcoin.
Is Dogecoin a worthy investment then?
Although DOGE’s ability to get back up from heavy blows is laudable, it doesn’t necessarily bode well for investors looking to make money fast. This recent fluctuation over 48 hours underscores the fact that Dogecoin remains one of the most volatile tokens available today. For hodlers or those with money to spare, this may not be too consequential. However, for those with smaller investment capitals or those who plan to make aggressive trades, investing in DOGE right now may be more frustrating than it’s worth.
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