In the last few hours, the crypto community has been shaken by the big change in the ranking of the top 10 currencies. Dogecoin is no longer one of them. With a market capitalization of more than 9 billion euros, Elon Musk’s favorite crypto is eliminated from the top 10.
Dogecoin fell victim, like all other cryptos, to the crypto crash a few weeks ago. Although the best one was relaunched, this was not the case with experienced Dogecoin down 1.78% in the last 7 days. This benefited the Polkadot took 10th place in this ranking from Dogecoin are relegated to 11th place.
The reasons for the fall of Dogecoin
Since mid-November when it had a value of 0.22 euros, Dogecoin has been in the red. This did not improve with the crash of June 2022 when it fell below 0.05 euro. With the confidence of investors and the unwavering support of Space X CEO Elon Musk, it managed to climb back to 0.074 euro at the end of July.
so we are ^ _ ^
show us your best #Dogecoin this week’s memes. https://t.co/BVyeyS67qO
— Dogecoin (@dogecoin) August 7, 2022
All these efforts are not enough since Dogecoin is no longer part of the top 10 currencies. Polkadot downgraded its value to 9.16 euros with a market capitalization of nearly 10 billion euros.
A number of reasons can explain the fall of Dogecoin, among the most common ones that arise are:
- The arrival of new cryptos like Tamadoge
- The Dogecoin reward
- Inflation signs
The arrival of new cryptos like Tamadoge
One of Elon Musk’s arguments in support of Dogecoin is that this token is a meme and is associated with dogs. Some other crypts such as Tamadoge or Shiba Inu focus on the same theme.
So the competition is getting fierce. Therefore more and more investors are starting to abandon DOGE for TAMA. This is because of the concept developed by Tamadoge, but also because of the seriousness of the project.
The Dogecoin reward
Many consider the Dogecoin boom to be a flash in the pan. A bubble fueled by strong media support from Tesla CEOs. Many investors put money into DOGE because Elon Musk is behind it. Thus comes the interest in the project which presents the same coin in the background.
Therefore the Dogecoin is far from its record when it exceeded 0.5 euro. Objectivity took more. Investors are starting to focus more on the performance and efficiency of crypto.
Scarcity is what gives a good its value. The DOGE token is present on the market today in astronomical quantity. Today is a day more than 132 billion DOGE tokens in circulation. This has an undeniable impact on the price drop of this crypto.
Compared to DOGE, the sign Polkadot is over 100 times rarer. There are just over 1.1 billion DOT in circulation for a supply of 1.2 billion.
A new parachain lease auction has begun, with anonymous parachain ID 2057 currently in charge. https://t.co/LodxXiY0DD
—Laboon Bill | W3F (@BillLaboon) August 8, 2022
All these elements lead some analysts to say that Dogecoin’s success was artificial. This downgrade will affect the Dogecoin price prediction, which may seem like a small thing, but has a strong significance.
Dogecoin Price Forecasts
The volatility of the cryptocurrency market is even greater when it comes to meme coins. In the case of Dogecoins, the predictions gave it a value of 0.3 euros at the end of 2022. However, with its downgrade from the top 10 cryptocurrencies, this prediction has been revised downwards.
The price prediction for Dogecoin at the end of 2022 is currently 0.09 Euro. Meanwhile the projections go to the end of 2023 from 0.6 euro to 0.1 euro. 2024 was supposed to be a major turning point for the DOGE with a forecast of 0.73 euros, but this is now €0.45.
The current fluctuations in the value of DOGE and its place in the ranking of the best cryptos will continue to be influenced by the forecast. These are estimates only and may change at any time.
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