- Dogecoin lost almost all of its value following the surge in social media.
- Its price drop intensified in the general bear market for cryptocurrencies.
The price of the cryptocurrency dogecoin (DOGE) fell 93% from its all-time high 14 months ago. The depreciation has caused it to lose almost all the growth it had had, driven by the massive sales of those who had bought it.
The all-time high that the cryptocurrency reached was 70 cents in May 2021. Its investors expected it to trade at USD 1 and even much higher due to the rally it experienced that year. But far from it, since then, the price of dogecoin has entered a free fall, now touching $0.05, according to TradingView.
At its best, dogecoin achieved an extreme rise of almost 1,100% in just one month to reach its all-time high. Analysts estimate that much of its growth was the product of public support from billionaire businessman Elon Musk, who has 98 million followers on Twitter.
Likewise, the purchase of the cryptocurrency was motivated by different enthusiasts on Reddit and Twitter who encouraged its adoption and price increase. In this way, at that time a wave of positive comments broke out on social networks with dogecoin memes that brought fame to the cryptocurrency and its iconic image.
Even a song released in early 2021 became something of an anthem for his community, garnering over 2 million views. This song said that the only cryptocurrency to invest in was dogecoin and it should never be sold.
The song, as well as the shared memes, prompted more hoarding and long-term storage. Of course, this action would cause its price to rise if people just bought it and didn’t sell it, something that didn’t end up happening.
Elon Musk faces a $258 billion lawsuit for inflating the price of dogecoin
In such a scenario, celebrities such as Elon Musk showed their bullish conviction for the future of Dogecoin, which was born in 2013 as a joke as a meme coin with the image of a dog. However, since its peak, the performance of its market has only gone from bad to worse, following a confluence of factors.
Currently, Elon Musk and his companies, Tesla and SpaceX, have been facing a lawsuit since this week for allegedly inflating the price of dogecoin. According to Bloomberg, the US citizen who filed the lawsuit accuses them of forming an illegal extortion organization that fueled the alleged dogecoin pyramid scheme.
Dogecoin led to the growth of more meme coins that plummeted
It is estimated that at some point the momentum of the rise of dogecoin in social networks stopped having so much force, causing investors to proceed to sell their funds. That, added to the macroeconomic context that led to the general fall of the markets, including bitcoin, caused the crypto meme to currently be worth only a few tenths of a dollar.
The same has happened with other related crypto memes, such as the Shiba Inu (SHIB), which also has the face of a dog. This meme coin became more popular after the rise of dogecoin when Elon Musk’s comments about the coin began to impact its price. Its rises were very high, although the currency never reached more than a few cents and then began to depreciate.
Different specialists, such as Jess_BTC, point out that the bitcoin bull market favors the growth of many altcoins. But, because they come from projects that have no foundation to continue growing, their prices drop as soon as BTC enters a bear market.
In this way, they maintain that these cryptocurrencies end up disappearing over time. In each cycle of BTC, there are more altcoins than in the previous one and many of these coins end up disappearing, he indicates. Instead, bitcoin has historically managed to overcome all of its bear markets since its inception in 2009.
“Almost no altcoin survives a full cycle. Almost all of them will die. Many others will come. But the only one that has not moved or died, nor will it, is bitcoin, ”concludes Jess_BTC. This is the prevailing thought among enthusiasts of the highest value cryptocurrency, which is why some continue to accumulate in the current bear market.