Dogecoin Struggles to Keep Up
Despite the popularity of Dogecoin as a meme coin, its price has not performed as well as expected. While other cryptocurrencies like Bitcoin and Ethereum have reached new yearly highs in 2023, Dogecoin has struggled to see significant gains. Although it has risen from its lows earlier in the year, it has only seen small increases compared to other assets.
Disappointing Performance Despite Developments
In December, there were several developments that pushed the price of Dogecoin above $0.1, but it still fell short compared to its counterparts. These developments included sending physical Dogecoins to the moon and an upcoming space mission in January 2024. However, after the initial excitement faded, the price of DOGE returned to its lackluster performance. Even when its biggest rival Shiba Inu saw a 20% increase, Dogecoin only experienced a 4% increase before falling again.
Potential for Change in Dogecoin’s Performance
Despite its slow performance, there are signs that Dogecoin’s fortunes may be changing soon. According to Galaxy analyst Zack Pokorny, there have been some positive changes in multiple metrics for Dogecoin. The spot trading volume for DOGE has significantly increased and remains high since November. Additionally, there has been an increase in transactions on the network and block sizes produced recently.
The influx of new users on the Dogecoin network is another positive sign, with non-zero balances and sending accounts seeing growth. This suggests renewed interest and potential for further growth. Pokorny also notes that the upcoming DOGE space mission could generate more enthusiasm among investors.
Hot Take: Dogecoin’s Potential Reversal
Despite its recent struggles, there are indications that Dogecoin could experience a turnaround in its performance. With rising spot trading volume, increased network activity, and growing user interest, the meme coin may be poised for a surge. The upcoming DOGE space mission could also serve as a catalyst for renewed enthusiasm among investors. While Dogecoin has disappointed so far, it’s worth keeping an eye on these positive developments that may signal a brighter future for the popular meme coin.
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