In summary
- Dogecoin fell 2.5% since last Wednesday, trading at $0.38 after reaching $0.43 a week ago.
- CHILLGUY, a new token inspired by a viral video, rose 400%, reaching $0.41 and $408 million capitalization.
- DOGE miners sell historical accumulations due to the high profitability of Mining merged with Litecoin.
Dogecoin is slowing down, at least for now, after a week of huge gains.
While other long-standing dog coins are on the decline, there is a new dog-themed token that is taking over from DOGE, catapulting up the charts this week.
The seventh-largest Cryptocurrency by market capitalization is now trading at $0.38, according to data from CoinGecko. That represents a 0.5% drop in 24 hours and a 2.5% decrease since last Wednesday.
Admittedly, it’s a modest drop for a particularly volatile currency, but it’s also a dramatic reversal from last week’s action.
Just over a week ago, Dogecoin hit a three-year high price of $0.43 and returned to the $0.40 mark on Tuesday amid another Bitcoin all-time high push, but the last week has been quiet in comparison. with what had happened before.
Shiba Inu (SHIB), Bonk (BONK), and Dogwifhat (WIF) are also down on the day, while only BONK remains in the green for the past seven days.
Floki (FLOKI), however, is standing on its hind legs, rising roughly 15% in the week following the listing announcement on Coinbase on Wednesday.
A newcomer to the meme dog pack is making waves despite market declines. Just a Chill Guy (CHILLGUY), a Solana-based meme coin inspired by a viral TikTok video of a casually dressed anthropomorphic dog, has surged 400% in the past day, reaching $0.41 market cap of $408 million. The token was launched this Monday.
Why is DOGE down?
Why has Dogecoin’s momentum slowed since last week? DOGE and other meme coins are notoriously volatile, so a correction after a rally is a typical occurrence.
Dogecoin momentum is typically driven by attention and excitement. As the hype around Donald Trump’s election victory and speculation over Elon Musk’s proposed Department of Government Efficiency (DOGE) fades, the positive impact on its price may diminish.
However, Wintermute OTC trader Jake Ostrovskis suggests that what is happening with Dogecoin is not just happening to the top meme coin, as many altcoins are in the same situation right now.
“We are seeing relative weakness in the broader Altcoin space,” he told Decrypt. “Bitcoin’s outperformance is sucking liquidity out of the ‘alts,’ he said. “These markets are also volatile by nature, so corrections are part of normal trading.”
Meanwhile, BIT Mining Chief Economist Youwei Yang flagged possible changes to Dogecoin mining, including “merge mining” with Litecoin (LTC), suggesting miners could be selling their holdings while the price is high.
“LTC/DOGE mining is at a very lucrative level, two to three times more profitable than Bitcoin, depending on the generation of ASICs,” Yang said. “Miners are selling large amounts of historically and recently accumulated DOGE to lock in some profits.”
Yang recommended miners lock in profits while DOGE is on the rise: “We learned from history and fear that this level of profits will not last,” Yang told Decrypt. “Sell something to ensure profits, or at least to pay the electricity bill.”
Even with the drop, Dogecoin has made big gains in the last month, with data from CoinGecko showing it is up more than 163% in 30 days.
Elon Musk, founder of Tesla and SpaceX, played a crucial role in the rise of Dogecoin. It all started in 2019, when he started promoting the cryptocurrency on Twitter (now called “X”), which he now owns.
His constant posts and jokes about Dogecoin helped create an enthusiastic community around the currency. This media attention skyrocketed his value and popularity. As a result, Dogecoin has seen significant growth, with a market capitalization exceeding $55 billion.
Edited by Sebastian Sinclair
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