Some days ago, Doge impressed the digital asset space by surging as high as 80%, but this was short-lived as the coin is losing more value than ever in the last few days. Dogecoin holders have enjoyed the continuous rally that took the asset as high as 362%, but the declines might mean that the coin sees some corrections after the attractive gains.
Experts believe that the corrections would continue until some changes occur, such as another rally. Doge is known as one of the most volatile digital assets in the space, and it easily decreases or increases as a result of the slightest market reaction.
Elon Musk’s influence over Dogecoin
Elon Musk is a known influencer in the space, and his tweets often pumped the asset’s price by 40%. This has lead to the media’s reaction to Musk’s post when he writes about the altcoin. Interestingly, some people have named his influence the Elon Musk effect as the businessman is known to encourage the coin’s purchase often.
Statistics show that Dogecoin’s rally began around April 6, and the coin was just $0.6. Now, the crypto has grown six times since then. Dogecoin jumped to $0.39, but a decline around this range means that the coin would continue falling.
The Dogecoin trend started some years ago when people created the doge meme to mock the growing digital assets, leading to its birth. After then, software programmer Billy Markus and a host of other experts made the coin.
At first, investors didn’t take the coin seriously due to the circumstances that led to its creation, but Musk’s influence has been pushing the growth for the past few months. The coin is represented by a Japanese dog called Shiba Inu and also Doge by others. The meme rose from a comic trend to a well-known and loved digital asset amongst crypto enthusiasts.
Celebrities influence Doge’s growth
During early 2020, Dogecoin was only known to a handful of people who are interested in digital assets, and only a few people invested in the asset. Bitcoin’s outstanding growth over the months has made even the smallest coins very popular.
Twitter has been the biggest influence behind Doge’s growth, and most incidences that trend Dogecoin comes from the large social media network. Interestingly, Musk is not the only one that influenced the Doge growth. Other known celebrities like Snoop Dogg and Gene Simmons have surged the asset’s prices through their encouraging tweets.
The coin has been enjoying steady followership, and its market cap went as high as $17 billion by February. The crypto space calculates the market cap by multiplying the available assets in calculation and the current value. Dogecoin has grown since its February surge and is now worth around $50 billion in market capitalization.
It’s safe to note that the world’s global crypto market cap is around $2 trillion. Bitcoin takes up most of the value as it stands over $1 trillion, dwarfing most coins within the crypto space. Bitcoin has seen recent gains, and analysis shows that the market would remain bullish.