Driven by the social media flirtation of an eccentric billionaire and the coordinated efforts of strategic Reddit traders, the value of Dogecoin has increased by 15,000% since it peaked in early May at the beginning of the year.
As the price of Dogecoin has soared, it has also been affected by a large number of Internet users who have never heard of an eight-year-old cryptocurrency that even industry insiders believe is dead. Dogecoin is purely a joke and is hardly mentioned in the ongoing story of the cryptocurrency space. The mainstream media has long considered it a synonym for the word “bitcoin” itself.
Therefore, in early May, when Dogecoin search volume Google Trends records rose to match Bitcoin. In the first week of May, search volumes for these two terms were equal, as Dogecoin rose to a record high of $0.73. For context, in January, searches for Bitcoin exceeded Dogecoin by more than 8,000%.
It is foreseeable that the governor’s presence on Twitter has also been promoted. The self-proclaimed Twitter of the governor Elon Musk’s tweets Often leads to Dogecoin being mentioned more often than Bitcoin.
According to data from Bitinfocharts, the highest peak mentioned by Dogecoin Twitter appeared in late January, when Reddit traders choose Dogecoin Become the cryptocurrency equivalent of GameStop.
The price of Doge rose by more than 300% that day, and there were 944,000 tweets containing the word Dogecoin is recordedBy comparison, only 196,000 mentioned Bitcoin. Musk released a meme with the word “Dogue” at the time as a modification of the name of the fashion magazine “Vogue”. At the time, many people thought it was an implicit support for the Dogecoin pump.
The rise of Dogecoin is the same. In the hustle and bustle, Created a new millionaire Out of thin air, and other Lose life savings Because they followed the leadership of what they thought was Tesla’s happy CEO on Twitter.
However, the rise must fall, and as the valuation of Dogecoin has fallen by more than 60%, its position on the media stage that it has won at a low price has also fallen. After reaching its peak in early May, Dogecoin’s search volume on Google dropped by 90%, as a large number of unsuspecting temporary Internet users moved to other areas.
Similarly, for most of the year, after more mentions of Bitcoin on Twitter than Bitcoin, Dogecoin was eventually pulled back, and it has not surpassed Bitcoin on social media platforms for more than a month. currency.
Taking a look at the blockchain statistics, we also see that some usage statistics of Dogecoin have fallen even beyond the recent price collapse.We usually expect the low ebb of Dogecoin trading to be lower than this year’s bull market, but According to the data According to data from Bitinfocharts, the daily trading volume of Dogecoin has recently hit a nearly three-year low, with less than 20,000 transactions-a number that has not been seen since October 2018.
Despite the media hype, people have actually lost confidence in Dogecoin as a usable cryptocurrency. Is this a sign? Maybe. As Dogecoin becomes the plaything of the crypto whale in 2021, it is often subject to huge fluctuations in transactions, fees, and the value of currencies traded through its blockchain.
Since May 5th, when more than 82 billion US dollars were sent through the blockchain in a day, the daily transaction value of Dogecoin has been Falling, As of June 14 is 4.4 billion U.S. dollars.In the above-mentioned multi-billion dollar flow, Dogecoin 25,000% increase in transaction fees, From $0.01 to $2.52. The subsequent decrease in the amount of blockchain usage reduced the cost again to $0.60.
Although attention and usage seem to have declined on several indicators, it would be foolish to bet on Dogecoin’s re-emergence in the coming months and years. Even if Elon Musk loses interest in Dogecoin and his tweet disappears, will other global celebrities appear and expose the coin to the public again?
Just this week, the original Dogecoin Shiba Inu is an irreplaceable token in the picture Sold for $4 million in ether, Which shows that the Dogecoin hype has not yet completely cooled down. A survey in May showed that more Americans Heard of Dogecoin Than they own Ethereum-a seven-year-old project that contains Most developers In the field of cryptocurrency.