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Dogecoin (DOGE), the world's largest meme coin by market capitalization, is gradually losing its bullish momentum, with its price slipping by 4.80% at the time of writing to $0.09153. Dogecoin was the top-performing altcoin this week as Twitter, the micro-blogging platform owned by the meme coin's biggest advocate, changed its app's logo to feature that of the Shiba Inu-themed cryptocurrency.
The impact of the change was expected to stir a massive increase in the price of the asset, a trend that was notably recorded. However, this trend is currently fading off as core DOGE investors who double mostly as retail holders are relaxing their accumulation push.
According to on-chain transaction data, Dogecoin's trading volume has slumped by more than 45%, which confirms a cool-off to the current buying momentum.
The hype in the digital currency must have faded as fast as it did because of the inherent perception that many still hold against the coin. Having been tagged as a pump-and-dump token by most critics, investors believe they are better off taking profits at this time than when Twitter eventually pulls the meme coin's logo from its platform.
Godfrey BenjaminImpact of Elon Musk's support
Thus far, Dogecoin has only one fundamental, and that is the fact that it is Elon Musk's favorite digital currency. Thus far, the billionaire investor has played a major role in pushing the publicity of the asset but without much utility added to help back its popularity.
Investors backing Web3.0 and crypto projects at this time are exploring assets with a focus on utility or those building infrastructures that can help sustain the influx of people into the nascent industry.
Dogecoin will continue to experience this unsustainable growth unless Musk makes good on the expectations of the community to integrate the meme coin as one of the payment options for services on Twitter in the near future.
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya
Vladislav Sopov