Dogecoin, the meme-inspired crypto that shot to the market’s attention earlier this year, has suffered a sharp decline from its recent highs as the digital currency tumbled 21% to US$0.31 in late-morning trading on Wednesday.
Despite hopes from some bulls that the advent of ‘Dogecoin Day’ on April 20, or 4/20 in US calendar parlance, would help to drive the value of the ‘memecoin’ higher, possibly even to the coveted US$1 level, or even to a memeable US$0.69, the rampers were left disappointed as the crypto effectively lost all of the current week’s gains.
However, some are positing that Dogecoin’s raised public profile following its surge earlier this year, thanks partly to support on Twitter from Tesla Inc (NASDAQ:TSLA) boss Elon Musk, may mean it has scope to appreciate in value into the future.
There is also the question as to whether its new prominence will draw more attention and support to the underlying infrastructure of the token, with activity on the blockchain system that powers Dogecoin has risen to record levels.
However, others may see Dogecoin’s swings as a broader signal of the volatility in crypto markets after the explosion in the price of Bitcoin and other cryptos over the last year attracted more and more investment from both the institutional and retail ends of the market.