- Dogecoin started the year at $0.0025, and the price grew to $0.74, an astounding return of 29,600%.
- The prevailing market conditions are incredibly risk for holders of meme projects like Dogecoin.
- Within a month, the price has crashed by more than 70% in what appears to be a bubble burst.
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Amid Bitcoin’s ongoing correction, Dogecoin is crashing at a far quicker pace in what looks like a bubble that has burst at last.
Demise of Dogecoin
China’s recent restrictions on Bitcoin mining has caused turmoil in the market. Since the last month, the overall crypto market has lost almost half its value, coming down from $2.5 trillion to now $1.3 trillion.
The prevailing market conditions may even be worse for holders of popular meme projects, that are perceived to be of now value other than their comical nature. Let’s look at the father of all meme coins, Dogecoin which is losing its billions market capitalization each week.
Looking at the $doge price right now and we still have like 19,000% to go. Very bearish, but I can’t bring myself to sell in this range, so I’ll just keep DCA’ing into projects with real fundamentals.
— αlphα better (@_neostradamus) June 22, 2021
Dogecoin started the year at $0.0025, and the price climbed as high as $0.74 per coin on May 8, an astounding return of 29,600%. In other words, if you had invested $1,000 in Dogecoin on Jan. 1, it would have turned into $296,000.
According to many financial analysts, Dogecoin’s ascent was driven by hype and support from tech billionaire and CEO of Tesla Motors Elon Musk. Musk, who is considered by many a tech thought leader expressed admiration for the meme coin with his 57 million followers.
This was the catalyst for the 2021 Dogecoin mania that followed.