The Once Loved Meme Coin
Dogecoin was created in 2013 as a joke and yet quickly acquired a very strong following as users of the meme currency went on to form one of the most loyal and dedicated communities in the Crypto space! Apart from a recent TikTok syndicate, who conspired to pump the price of Dogecoin, things have been relatively quiet on the Doge front. Though Doge did manage to pump significantly due to the orchestrated move, it did however retrace straight back down to previous levels and lower.
From time to time Doge does manage to gain some serious "airtime" via Elon Musk's Twitter feed, who once jokingly self appointed himself as the Dogecoin CEO.
As the Crypto space has advanced with strong developments such as oracles and DeFi, many have considered Doge an outdated and useless altcoin! Over the past number of months, Doge has slowly been pushed right out of the Top 30 on Coinmarketcap and is now barely ranked within the Top 50. I remember back in 2017 when new alts were hitting the market and making all types of bold claims, market participants became mesmerized and began dumping their BTC for fresh new alts that later went on to lose 98% of their value.
Projects such as Litecoin and Dogecoin are similarly being pushed aside in favor of innovation and advancement. Advancement is good and it will continue to take place but one has to be careful of becoming starstruck by new projects because they will not all make it to the finish line.
Actively Utilized & Traded
Dogecoin continues to be utilized as a vehicle for value transfer, especially within the realm of social media and tips. To give you an idea of daily traded volume, take a look at a project like Aave. On average Doge trades approximately 3X the volume Aave! Synthetix Token, Compound and Theta Network all trade fractional amounts relative to Doge.
The trading volume of Litecoin is actually 3X the trading volume of ChainLink and the list goes on. One has to be careful of discounting a project based on one metric, innovation.
BTC has almost zero innovation since inception and if you were to ask even the most bullish altcoin investor, you would find BTC in their portfolio. Many think of BTC as a new gold and Litecoin was created to be a new silver. Certain advancements have been ignored by Litecoin because they do not fit into the narrative or purpose of Litecoin. Likewise, Doge became a trusted vehicle to make use of for the purpose of micro payments.
Oracles are great but not every new project is incorporating the tech, DeFi is also great but not all new or significant projects are necessarily DeFi by design.
One has to be very careful about becoming a fanatic in any one sphere! Crypto is broad and one needs to remember that, especially when it comes to portfolio design. Expect to see significant moves in Doge and LTC once BTC is on the move!