Since its all-time high of $0.73, Dogecoin has lost over seventy percent of its value—in July, it has also decreased by over thirty percent.
Dogecoin’s spectacular ascent was aided by Tesla and SpaceX creator Elon Musk, as well as a promise of further technological improvements.
With Dogecoin having a tough time the rest of the market is not faring much better. Over the last several weeks, Bitcoin has traded between $36,000 and $30,000, with Ethereum trading the same, fluctuating between $2,400 and $1,800.
A Stagnant Crypto Market as a Whole
Altcoins like Dogecoin are having similar performance to the rest of the market because of this connection.
Over the last several weeks, Bitcoin has remained stagnant between approximately $30,000 and $40,000. The price of Bitcoin was approximately 3% lower at $33,245.7 as per CoinDesk statistics. Despite the difficulties that Bitcoin has faced this year, Bitcoin is projected to be up approximately 14% by 2021.
Ether, the second-biggest cryptocurrency by market capitalization, has decreased 5% daily over the past 24 hours to $2,023, while Dogecoin has decreased by 10% to $0.20 over the same period. Over the last several days, ether has been in a trading range, hovering slightly above its 200-day moving average. A few other digital currencies such as Cardano, XRP, Uniswap also saw declines in value.
Closer regulatory scrutiny seems to be a major factor driving the downturn. Government bodies are continuing to heighten their focus on cryptocurrencies such as stablecoins that are linked to conventional fiat currencies.
As part of a wider crackdown on an increase in financial-related material, on July 10, TikTok banned influencers from promoting cryptocurrency. Other meme currencies, such as Dogecoin, have also proliferated on the site.
What is Dogecoin?
“Doge” is a popular Internet meme that inspired the creation of the Dogecoin cryptocurrency. At first, it was intended as a joke, but it has developed into a thriving community of devotees. The project went through an abrupt price increase in May 2021 when it temporarily reached a market value of $88 billion.
When Jackson Palmer, an Adobe employee, first saw the plethora of cryptocurrencies appearing in 2013, he was skeptical. He put out a tweet that he was investing in Dogecoin, a completely made-up currency created as a joke around a famous meme that features a Shiba Inu dog.
Even though he posted something as a joke, a few individuals were convinced he was right. A team of specialists in the business thought they were in dire need of a fun, and yet still relevant, token that could counteract other popular tokens. Thus, Palmer joined together with Billy Markus, a programmer, to bring about the creation of Dogecoin.