Late April and early May, Dogecoin prices had been mooning like nobody’s business. The hype the crypto had gotten worldwide made many people gain interest in the crypto. Millions invested in the coin definitely because of its popularity. All of that led to various people wondering, “Will Dogecoin crash from all of this hype it’s getting?”
In terms of popularity and trending, Dogecoin beats all the other cryptos. Before the significant dip that’s going on in the crypto world right now, the meme coin was already in the top 5 in terms of market cap. Its all-time high was May 5th, where it had gotten to $0.72 per coin. The popularity it had been gunning worldwide influenced most crypto newbies to invest in it as they felt they were already late to the ‘Bitcoin party.’ However, market experts do not have a lot of faith in Dogecoin’s stability and believe that its bubble will burst soon, and that’s what we are going to look at in this article. Stick around, and we’ll see.
So, what is Dogecoin?
Dogecoin is very popular crypto that got formed in 2013 as a joke. The reason behind its formation was so that the general public that was not so knowledgeable about cryptocurrencies before could find a much friendlier introduction to crypto. Dogecoin was made from a fork of the Bitcoin blockchain. Most people gained more faith in Dogecoin and didn’t view it as a ‘get rich fast scheme like the other cryptocurrencies. It didn’t cost as much when it began, but its popularity soared, so did its demand.
Now, should you buy or trade Dogecoin?
I’m not going to lie to you. The crypto market is volatile, and the market experts cannot correctly predict the direction it decides to take. To add to that, many crypto experts do not believe in Dogecoin. Many of them agree that it is not an excellent long-term investment. Their reasoning is due to some factors such as:
Dogecoin is an inflationary coin. This means that its supply never ends, but instead, it keeps growing more rapidly as time passes. In a year, over 4 billion coins are mined and added to the current overall supply. This alone is a red flag for long-term investment compared to deflationary coins such as Bitcoin, whose value increases over time due to its scarcity. You can easily trade Dogecoin using the Crypto Genius platform.
Will Dogecoin crash?
The only thing that makes Dogecoin’s price go up is its popularity and, well, Elon Musk’s tweets. The demand for Dogecoin after the market dip has, however, significantly reduced. Its supply still goes on even when the demand drops. Yahoo Finance says that about 100 wallets only own nearly 90% of all Dogecoin’s supply. If these owners today decided to sell their coins, the market would be flooded by over 100 billion Dogecoins. That would lead to the most significant crash to ever be witnessed in the crypto world. Well, we can’t wish for that to happen now, can we?
There is a reason, people are advised only to invest what they can lose, and such crashes are the reason. Do lots of research whenever any crypto spikes your interest then you can decide whether it is good to put your money in it.
The coin is still in the top 10 coins, with a $0.37 value currently and a $48B market cap. Its price has hope of going up since Elon promises to take it to the moon. In a few years, crypto experts may have more faith in Dogecoin, and it might even go up to $1. Such inflation will do some good to investors, and maybe people will take the meme coin more seriously.
The crypto scene is full of people making all kinds of speculations right now. Make wise decisions solely dependent on your research. You can choose to either hodl or even be a trader while keeping in mind the volatility cryptocurrency possesses.
Most established exchanges are yet to make Dogecoin available on their platforms, even if some investors regard Dogecoin as a distraction from the market. Even with the decreases in the past few weeks, Dogecoin has started to rise again slowly. It has an over 10% increase right now. However, the decrease had caused a lot of fear for the newbie investors who are not used to the goings of cryptocurrency.
Sam Onigbanjo, Capital Markets’ founding partner, believes that Dogecoin is on the uptrend. He says that the only test it will face is to surpass the $0.72 mark that he predicts is possible by the end of July. Since Dogecoin is driven by speculations and endorsements by celebrities, Sam believes all of that will be the trend again in the coming weeks, and thus the price will go up. According to market experts, the only bad thing about a coin shooting too fast is that it can dip just as fast. Let’s see how crazy the Doge ride is going to be.