A Look Into the Four Major Influences Affecting the Value of Dogecoin
Dogecoin (DOGE), a memecoin created as a parody of cryptocurrencies, has been impacted by the 2022 crypto-winter, with its value down almost 90% from its peak of 46p in May 2021. Four key pressures affecting DOGE’s value in the short to medium term are discussed. First, unlike Bitcoin, DOGE was created with no hard cap on the total number of coins that could be minted. Second, demand will play a significant role in determining DOGE’s price in the future, with a loss of interest in the cryptocurrency seen through Google searches. Third, DOGE faces competition from other cryptocurrencies, including its closest memecoin competition Shiba Inu. Finally, market sentiment, measured using fear and greed indices, has shown the crypto market to be in an extreme fear phase for the past month, as crypto holders offload their assets. Crypto Consultant to eToro and author Glen Goodman believes that the fate of DOGE depends on what Elon Musk does in the future, as Musk is serious about his support for the currency and if his purchase of Twitter goes through, he intends to integrate crypto payments into the app, and no doubt that will include DOGE.