The Dogecoin (DOGE) price has been rising steadily since getting listed on the Robinhood exchange. However, the plummeting of Bitcoin price appears to be dragging down the fast growing coin gains. The 20% growth experienced after getting added to the exchange saw the coin become one of the most traded digital assets in just hours.
According to CoinarketCap statistics, any time there is a spike on the Bitcoin price, DOGE gains substantially. This raises the questions as whether it is worth buying and holding the coin. Many crypto fans have the notion that this is a joke coin but of late, the coin has become a major player in moving funds across exchanges.
Dogecoin Market Dominance
Not many crypto enthusiasts take the coin seriously based on its market entry in the early stages. However, the coin has dominated the Asian market and has been doing better than Bitcoin Cash until mid-June when its transaction volumes started to drop. The Robinhood listing hype seems to have fizzled out and the coin is drifting back to the struggling zone.
The coin has a very robust infrastructure that has not been harnessed to its fullness. The recent price surge has proved that the coin is a sleeping giant waiting for the right direction to rise to the top 10 coins by popularity, transactions and value. The secret behind Dogecoin still remains at the fun level.
Dogecoin Risks Limiting DOGE Opportunities
Just like most digital coins, Dogecoin is very volatile and this has prevented its price from gaining traction. Doge has a supply of 115.6 billion DOGE in circulation and this makes it hard for the coin to achieve any scarcity levels in the near future. This is one of the risks that keep traders away from holding.
The coin performance in the market has always been boosted by speculation. This is clearly seen on its burst-boom tendencies. When a digital coin is used as a speculative tool in the market, the price stays low and this is a red flag for the investor. Even when more capital is poured into the crypto market by instittions, DOGE might not get a price or value boost from it.
Major Cryptocurrency exchanges have been hesitant in listing DOGE and this has limited its possibility of any global visibility. Popular exchanges like KuCoin, Huobi and OKEx have not shown any interest in the coin and this has kept investors and general traders away from the joke coin. Although the coin has a passionate community, it still lacks the drive towards tangible traction.
Jackson Palmer, the coin creator has, in several occasions, come out in defense of the state of the coin. Last month, (July, 16) he warned DOGE holders and enthusiast against having too much hopes on the coin gains in the near future adding the coin has not yet made him rich:
“I get asked this all the time: No, I do not own any Dogecoin nor has it made me rich.”
Creating a coin that you do not own sounds suspicious and this could drain investor confidence in seconds. As a creator, having a stake on the coin can boost investor confidence and increase adoption and this is the missing link in the ecosystem. However, the coin has a lot of potential waiting to be exploited.
Dogecoin Faltering Route to Market
Dogecoin has a limited exchange choice and much of its volumes are driven by two platforms; BtcTrade.im and HitBTC. The support from Robinhood still remains below par but it is a positive addition to the coins visibility in the market. The Robinhood spike experienced last month has fizzled out and the recent partnership with Kleros and the Doges on Trial game seems to have no price impact.
At press time, the DOGE coin price stood at $0.002786 after losing 2.17% to the dollar 1.77% to Bitcoin. The drop is not an isolated case and a drop in BTC price in the market appears to keep hitting hard on DOGE. Dogecoin is now ranked 35 by market cap and can do better if investor confidence is restored.