Dogecoin (Cryptography: Doge) It is one of today’s most popular meme coins, with a market capitalization of $24 billion. And that’s after a sharp drop of 50% so far.
Is it time to load into Dogecoin? There is one number I regularly track and measure how attractive dogcoin is to aggressive long-term investors looking for maximum growth.
As memecoin, the price movements of Dogecoin can vary widely in the short term, and in many cases it is little clear behind that price movement. Its volatility correlates very closely with other major cryptocurrencies such as Ethereum and Bitcoin, and is also linked to traditional stock market fluctuations. However, when it comes to whether Dogecoin is a good investment for long-term investors, the volume of its network transactions is a key metric.
DogeCoin is acknowledging increasing numbers of integrations granting additional transactional utilities as both a peer-to-peer cryptocurrency and a trade tool for the growth of decentralized application ecosystems (DAPPs). Network transaction counts are a great measure of success for Dogecoin’s ability to become more than just a meme coin with controversial intrinsic value.
Transaction counts in April plummeted to multi-night lows. According to Coinmarketcap, Dogecoin’s trading volume surged to $40 billion on November 11, 2024. Five months later, the 24-hour volume fell to $1 billion.
As one of the biggest meme coins, the Dogecoin community is undoubtedly its biggest strength. However, after a sudden price drop, dogcoin usage in that community has dropped significantly.
DogeCoin could still be a big speculative investment for very aggressive growth investors with extra cash. However, cryptocurrency is still not worth much outside of the coin status of memes, as transaction volumes have fallen by more than 97% against the recent peak. Therefore, it is extremely difficult to model its long-term price trajectory.
Buying dog coins today is like buying a lottery ticket. It uses extra disposable income well, but set expectations accordingly.
Consider this before purchasing inventory with Dogecoin.
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