Dogecoin Holds Sturdy Towards Weekend Flash Crash, What’s Occurring?

Markets tanked throughout the early hours of Sunday morning UTC, with Bitcoin dropping $10k in a matter of hours. Whereas Dogecoin additionally suffered a dip, its fall was trivial in comparison with the remainder of the market. By noon, DOGE had recovered and went on to submit 12% good points by the top of the day.

Dogecoin daily chart

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Quite a few figures have come ahead warning in opposition to Dogecoin’s lack of fundamentals. However as seen on Sunday, DOGE proved itself extra resilient than “blue-chip” choices. This begs the query, what is occurring with Dogecoin?

Dogecoin Reveals no Signal of Slowing Down

Dogecoin’s meteoric rise final week noticed it spike to $0.47 on Friday earlier than giving again a few of these good points over the weekend. Though the entire crypto market cap took an enormous hit, dropping from $2.2tr to backside at $1.9tr by noon, the affect on DOGE was minimal.

Whereas the likes of Cardano and Polkadot suffered share losses within the mid-twenties and have but to get well to pre-flash crash ranges, Dogecoin is presently up 20% from the time of the dip.

Critics argue that DOGE is a joke coin that shouldn’t be taken severely, citing points similar to the dearth of improvement and infinite token provide. However on the similar time, others have mentioned its attraction lies in bringing enjoyable to an in any other case critical business.

Co-founder Billy Markus hopes his creation can act because the antithesis to the darkish aspect of cryptocurrency. That’s the greed, the scamming, and the FOMO mentality that pushed him out of the business in 2015.

“Pleasure, kindness, studying, giving, empathy, enjoyable, group, inspiration, creativity, generosity, silliness, absurdity. All these issues are what makes Dogecoin worthwhile to me. If the group embodies these items, that’s True Worth.”

Whether or not you like it or hate it, a serious element of DOGE’s attraction is its standing indifferent from the crypto-norm.

DOGE as a Cost Methodology

As a response to DOGE-mania, IOG CEO Charles Hoskinson lately posted a video calling Dogecoin a “pet rock.” He attributes its rise to a mixture of Elon Musk and intelligent whale manipulation. That being so, with nothing sound underpinning its worth, he warned that retail traders would get harm when issues go pop.

The unique use case for Dogecoin was as a tipping mechanism to point out appreciation to content material creators. Nevertheless, due to billionaire Mark Cuban, plainly DOGE has a brand new use case as a fee technique.

The beginning of the month noticed Cuban’s Dallas Mavericks announce it will settle for DOGE as fee for merch and tickets. Cuban tweeted that the experiment has been a roaring success, promoting $122k of merch. Extra apparently, he mentioned he would by no means promote the DOGE he earns.

The explanations for this are unclear. However Cuban did let slip that Dogecoin is a enjoyable and interesting technique to generate PR.

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