- At the time of writing, Dogecoin faced this challenge as new memecoins came into the fold.
- First-mover advantage and a shift towards payments make up Dogecoin’s arsenal.
Will Dogecoin Hold Its Crown During The Next Big Bull Run? There was a wave of memecoin hype over the past few days, but OG memecoins barely got any attention. That’s because newer memecoins like PEPE have stolen the spotlight.
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Dogecoin enjoyed dominance in the memecoin segment during the last bull run. The first-mover advantage was a huge plus that added to the hype, at least until Shiba Inu came up with a challenge.
Fast forward to the present and now other upcoming memecoins are enjoying hype in their newness. That is why it is important to analyze the current state of Dogecoin and what the future holds.
Unfortunately, we don’t have a crystal ball to look into the future. What we do have is a set of facts and observations that can help gauge expectations. For example, memecoins are usually driven by initial hype. DOGE may have already exhausted its hype, which is why other upcoming memecoins are enjoying all the attention.
Dogecoin still has some chips on its side
Dogecoin also lacks a special use to drive organic utility. However, this brings us to another point that can underline DOGE’s strengths. It has been trying to move beyond its memecoin status and into payments.
Attention everyone #DOGEARMY! Help convince us @Starbucks accept #dogecoin! It’s time to show them what we’re made of
And don’t forget you can get 3% back in doge rewards if you #DogeCard bee #Starbucks.#StarbucksxDogecoin #To the moon and back pic.twitter.com/bU2gCTEGfi
— The DogeCard (@TheDogeCard) April 25, 2023
DOGE holders are still holding on to the possibility of Dogecoin becoming the official payment processor for Twitter. It has also managed to maintain a robust market cap despite heavy outflows during the 2022 crypto winter. The market cap stood at just over $11 billion at the time of writing.
The fact that it has maintained such a huge market cap despite a massive pullback confirmed the strength of Dogecoin’s first mover advantage. There are still many investors who still have faith in the coin.
In retrospect, DOGE’s price action is along with top cryptos like Bitcoin. This meant that there was still a significant chance that Bitcoin [BTC] will recover when the rest of the market turns bullish.
DOGE changed hands for $0.079 at the time of going to press. The latest price action indicated seller exhaustion over the past five days after previously experiencing a significant pullback.
Source: TradingView
In terms of the demand for Dogecoin, the total number of holders has increased over the past seven days. This confirmed that traders are buying the dip. On-chain volumes also showed signs of rejuvenation having previously fallen to weekly lows.
Source: Sentiment
Realistic or not, here is DOGE’s market cap in terms of BTC
In summary, Dogecoin is doing fine, but it could be better. The dynamics of the next great bull run will certainly be different from the last. Competition is one of the most important factors to consider.
On the other hand, the competition is also catching up and DOGE is trying to evolve.