Is dogecoin losing its place as one of the top cryptocurrencies in the world?
Dogecoin is the central character in a cryptocurrency saga that no one could have predicted in the beginning. Because of the rise in fame of the meme cryptocurrency, its market value has been dwindling in recent weeks, much like a candle flame blowing in the wind. It experienced an unimaginable high before crashing to the ground shortly afterward.
Everything was going swimmingly until it all came crashing down. As investors realized that the price increase was simply too great to sustain for an extended period, they began to withdraw their funds, causing the market capitalization to plummet by approximately $45 billion out of a total market capitalization of $50 billion in a matter of days.
Dogecoin was created in the year 2013 as a way to bring some levity to the overly serious and mathematical cryptocurrency market. Even the name Dogecoin was created as a parody of the Shiba Inu dog, which was a popular Internet meme at the time of its creation.
Dogecoin’s technical aspect
On the surface, Dogecoin seems to be no more than another cryptocurrency. It is only when you comprehend its use that you will be able to evaluate its advantages and disadvantages. A good illustration of this is the high transaction speed associated with Dogecoin, which is achieved at the expense of very low transaction fees. This is one of the most significant advantages of digital money.
Dogecoin is considered a hazardous investment by experts due to the significant volatility of the cryptocurrency price. Several experts have advised investors to act with care before purchasing dogecoin, stating that the cryptocurrency’s rise is extremely speculative and that they should only invest money they can afford to lose.
According to CoinMarketCap, the price of Dogecoin is presently at 49 cents, with a market capitalization of $63 billion.
Should you invest in it right now or not?
Dogecoin’s low value, as well as the likelihood that it would continue to be such, did not make it an attractive investment opportunity for investors, at least not until lately.
The cryptocurrency’s decline was even more surprising than its ascent since it left many people perplexed as to what to anticipate from it in the future.
Having said that, the Dogecoin community has made significant use of the cryptocurrency for charitable endeavors. Dogecoin is often used to make donations to charitable organizations and causes. As long as the currency serves these functions, the cryptocurrency’s following community will be sufficient to keep the cryptocurrency stable in the market.
The upcoming judgments by the Indian government on cryptocurrencies, which include Dogecoin, are another major reason why investors in India should refrain from making such a purchase. It is possible that the government will impose an absolute ban on cryptocurrency trading in the nation, as it has done before, which is a significant step that has been rumored for some time.
It is because of this volatility that experts are very suspicious of dogecoin, much more so than they are of other cryptocurrencies. They believe it is highly speculative and that it is a so-called meme trade based on social media hype. They warn that investors may suffer a financial loss.