Dogecoin Might Rally Post Bitcoin Halving; Memecoins Emerge as Fair Market Opportunity
Summary:
Dogecoin's price has dipped 8% daily and 18% monthly, yet historical data suggests a potential rally in seven months post Bitcoin halving. Some memecoins, like DOGE and PEPE, may maintain high valuations due to backing from strong, cult-like communities and validation from exchanges like Coinbase. Crypto prospects with significant venture capitalist allocations have caused retail investors to see memecoins as a fairer market opportunity. However, current interest in memecoins is considered temporary, rather than a resurgence of a memecoin "altseason".
In the last month, Dogecoin (DOGE) has seen a price drop. But looking at historical data, the cryptocurrency could potentially start to increase, hitting new record highs around seven months post the Bitcoin split. The price of Dogecoin is down by about 8% daily and more than 18% for the month. Yet, these trends align with previous cycles, hinting at a possible trajectory towards new heights. In the last crypto boom, Dogecoin saw a jump in May 2020, seven months after the 2020 Bitcoin split as per TradingView.
Dogecoin reached its peak at $0.73 on May 8, 2021, which is a year after the 2020 Bitcoin (BTC) split. Currently, Dogecoin is 73% down from that high point. If this pattern continues, Dogecoin could see a new record high in April 2025. However, these predictions can be tricky with memecoins as their value largely depends on speculation.
Memecoins are primarily driven by greed with little awareness of the high risk involved, says Robby Greenfield, the founder of Umoja Labs. Despite this, Greenfield believes some memecoins will hold high values. He mentions that coins like DOGE and PEPE will continue to gain legitimacy as exchanges like Coinbase introduce memecoin futures markets. Considering the strong communities that back these assets, they are likely to remain high-cap cryptos.
In 2024, many cryptocurrencies were launched with high fully diluted valuations (FDV) and considerable venture capitalist (VC) allocation, leading analysts to argue that this VC greed is harmful to cryptocurrencies in the long run. Hence, retail investors may view memecoins without VC allocations as the fairest market opportunity, according to Gianluca Sacco from VALR.
Other memecoins such as Pepe (PEPE), Shiba Inu (SHIB), Dogwifhat (WIF), and Floki (FLOKI) saw significant gains over the past week as per TradingView. However, Diane Dai from Dodo suggests that this increase doesn't signal a resurgence of a memecoin "altseason," but rather a temporary surge due to the halving event.
In the past 24 hours, the daily trading volume of memecoins fell by over 17% to $6.58 billion. The market capitalization of these coins decreased by 5.8% to $52.8 billion according to CoinMarketCap data.
The article doesn't offer investment advice or suggestions. Every investment and trading decision carries risks, so it's crucial for readers to do their own research before making any decisions.
Published At
4/25/2024 11:41:43 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.