Those who choose to invest in Dogecoin (DOGE) are in for another roller-coaster price fluctuation. In April, the meme coin saw an impressive 30% price surge following Dogecoin champion Elon Musk’s sudden Twitter takeover. However, as is the case for volatile cryptos, in general, the token saw another big tumble less than a month later. Just this May 8th, 2022, Dogecoin dropped 1.4% in just 24 hours. This recent poor performance has only added to the 81% crash that Dogecoin experienced in the past 12 months. Overall, this unstable performance has caused many investors to rightfully question if this meme asset is still worth holding onto.
Historically, though, Dogecoin has always been among the most “risky” of cryptocurrencies. Developed as a joke that poked fun at the competitive crypto market by two IBM engineers in 2013, Dogecoin was literally developed based on the popular doge meme. Despite its satirical background, though, DOGE quickly developed a following. Within its first month, over a million unique visitors went to the site. Early investors who dabble in Dogecoin were also pleased to see that the token had received support from public figures. These included Elon Musk and celebrity Snoop Dogg. Eventually, this widespread online popularity would see Dogecoin become one of the most recognisable and successful cryptos.
Unfortunately, as is the case for cryptocurrencies, Dogecoin has also seen its fair share of rapid increases and decreases in value. Before its massive rally early in the year, DOGE saw another sudden drop within a day. In the same month last year, those who chose to trade Dogecoin following the token’s rise to fame were unpleasantly surprised to see a 48-cent drop in just a few hours. Spurred, once again, by Elon Musk the cryptocurrency’s price dropped by over 26% following the mogul’s mention of the coin on SNL. Overall, it can be said that sensitivities and sudden price shifts are just part of Dogecoin’s very nature.
That being said, while volatility is part and parcel of cryptocurrencies, the exaggerated manifestations of this in Dogecoin have caused many investors to rightfully worry. With this most recent dip, many analysts predict that DOGE hasn’t seen the last of its woes this year. Interestingly, though, most DOGE investors are choosing not to sell their tokens. Instead, many are choosing to simply double down on their crypto strategies and initiatives. Foremost among these initiatives is to only buy Dogecoin from exchanges that offer some coverage. While crypto’s decentralized nature largely means that there is no governing body to provide safety nets, some countries offer crypto exchanges that work with qualified custodians. Through these partnerships, all investors are privy to cold storage and coin insurance that all ensures there is added security and a fallback should a token drop. Ultimately, this allows investors to optimize DOGE without being completely vulnerable to its movements.
At the same time, DOGE investors are also banking on the token’s usability and power. This means that rather than simply determining whether they should buy, sell, or hodl based on price, they’re now basing their decisions on how the token is performing in the greater scheme of things. For instance, those who own Dogecoin are now able to make payments to many mainstream entities. This includes companies like Tesla and auction house Sotheby’s. Because of this, DOGE has much more fluidity and value in the real world. This is also why it was recently been named among the top 10 leading cryptos to date. By considering this factor, investors can see how valuable their DOGE assets can truly be.
In conclusion, should investors be skipping DOGE? Not unless you’ve got a very modest investment budget. For those who can afford to play the long game or risk some cash, DOGE is still among the most promising tokens to date. Among investors who know how to adapt to this crypto’s movements, Dogecoin can still be a very lucrative investment.
Don’t worry, we hate spam too
one weekly digest, just the important stuff.