Elon Musk’s “hypes” no longer work
The Dogecoin rallies in 2021 had a lot to do with Tesla CEO Elon Musk. This tumultuous leader has reached a multi-billion dollar deal to buy Twitter. Some investors believe that a Musk-owned Twitter would be beneficial for Dogecoin, as Musk frequently promotes the crypto through tweets on the platform. Musk has a history of “pushing” Dogecoin, as evidenced by his plans to consume a McDonald’s Happy Meal live on TV if the fast food company adopted DOGE as a payment method in January.
However, if these types of announcements made the markets react in 2021, this is no longer the case.
The fundamentals of Dogecoin are not solid!
Dogecoin lags behind in features despite having celebrity support and a strong community for 2 years. Even the Shiba Inu (SHIB), launched in 2020, has developed an exchange and staking platform, as well as NFTs.
Use cases for Dogecoin are still limited to holding and sending funds. And the DOGE is far from being the best in the matter.
Moreover, due to its volatility of this asset, merchants are reluctant to accept it as a method of payment. Also, the token’s inherent inflation could degrade its value over time. The supply of Dogecoin today is 132 billion and is expected to increase by 5 billion every year.
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DOGE/USD did not exceed $0.2 in 2022
While other major cryptos have moved closer to their all-time highs or at least broken a major trendline upside, Dogecoin remains on a downtrend. Dogecoin virtually lost all of those gains in April after making a 30% rally.
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