dogecoinDespite being promoted as a meme coin, it is one of the most notable among today’s altcoins. DOGE continues to be in the basket of investors, although it still works mainly as a joke. So why do investors trust DOGE assets? Here are the important reasons to note.
Although Dogecoin has been popular lately, it is actually an old crypto asset. Despite this feature, it is one of the first generation entities that managed to stay in the top 10. Although it has stronger competitors such as Bitcoin Cash and Litecoin, it has managed to prevail.
Will Dogecoin, which remains relatively strong in the bear market in 2022, maintain this performance?
Elon Musk and Dogecoin
It would not be wrong to say that Elon Musk is the primary assurance of investors who have Dogecoin in their basket. Musk, one of the architects of the rally in 2021, continues to be one of the influential names.
Publishing the Vogue magazine with the title of Dogue on January 28, 2021, Musk managed to attract attention. With the effect of the rally in DOGE price, DOGE killer many competitors emerged and intensified the competition.
The increase in Dogecoin speculation after the acquisition of Twitter increased the excitement in the field. If Elon Musk realizes the integration of Twitter and DOGE, there is not much reason for it not to be a big rally.
Market Sentiment
Koinfinans.com As we reported, according to Santiment, Dogecoin lagged far behind the number of Google searches for altcoins in May 2021. In May 2021, DOGE reached an all-time high search level and gained attention.
In addition, DOGE’s social dominance in the period in question was 40%. However, this rate decreased to 14% in the last quarter of 2022. According to Santiment, this is likely to represent the ‘accumulation phase’.
Functionality of Blockchain
With Ethereum’s transition to proof-of-stake, Dogecoin became the second largest player to use proof-of-work. Blockchain, which attracts the attention of ETH miners as well as a strong miner audience, has a great advantage.
The fact that the network has been running smoothly for years is also a remarkable detail. These transactions focused on delivering fast as well as low fees.
bitcoinhas become digital gold because of its operating model. Dogecoin is the cryptocurrency candidate chosen to be the decentralized currency of daily life.
As a result, before the Dogecoin price hits the $1 level, cryptocurrency Many things need to change in the world.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.