Dogecoin News: This weeks dogecoin cryptocurrency analysis

Dogecoin cryptocurrency

Dogecoin: DOGE

Price: $0.3689

Market Capitalization: $47,908,682,024

Coins in supply: 129,881,831,420

Notable Events of the week

The Bill Markus and Jackson Palmer created Dogecoin cryptocurrency that features a Shiba Inu dog, has seen some real volatility in price movement over the last week. Tweets by Elon Musk around Bitcoin and the Tesla breakup created much of this volatility. They recently announced that Tesla will no longer be accepting Bitcoin, due to its high energy usage in mining Bitcoin. 

Further news this week was that Coinbase will make the meme inspired cryptocurrency available on the Coinbase Pro trading platform. This created much excitement and had a significant impact on the trading price.

Market capitalization

Crypto exchanges listed Dogecoin as the 6th largest cryptocurrency by market capitalization at over $U.S. 47 billion. Given that the market capitalisation at the beginning of May reached close to $U.S.95 Billion, this has been a significant decline from those levels. The China announcement created most of the decline. The announcement made by China was that they will no longer allow financial institutions to provide services related to cryptocurrencies.

Dogecoin market capitalization
Source: CoinMarketCap

Price movement

At time of writing the Dogecoin price was around 36 U.S. cents up from 31 U.S cents at the start of the week, but down over 13% from the previous day. At its high the cryptocurrency traded around 42 U.S., which was around the announcement of the Coinbase news, and at its lowest at 28 U.S. cents.

Dogecoin Price
Source: CoinMarketCap

Volumes traded

It has had a quick entry into the Top10 listed cryptocurrency exchanges with well over 129 billion coins created to date with most of its popularity amongst retail investors. Interestingly enough many of the coins traded had eastern trading times, which amounts to about 45% of volume traded. Close to $U.S 7 billion was traded in the last 24 hours. 

Other cryptocurrency comparisons

Besides various factors affecting the price of Dogecoin, various experts still consider the meme-coin to be closely correlated with Bitcoin. Compared to Bitcoin, as the number one listed coin, the market capitalization is around $U.S. 688 billion versus a dogecoin market capitalization of $U.S. 47 billion for Dogecoin.

Bitcoin, as of time of writing, was trading at $36,733.05. This is 1.91% higher from a week ago. In contrast, Dogecoin had a 15.84% growth in trade value over the same period.

Future expectations

The question is whether DOGE will be able to recover to early May levels. Sentiment is rather bearish at the moment, with many investors indicating that they believe there are further price declines to be expected in the short run. Unless that changes quite soon, by say an Elon Musk posts or social media updates, recovery may take longer than expected. 

To create some additional stimulus for trading DOGE, they announced that dogecoin will be giving away $1.2 million worth of prizes to anyone who traded $100 in DOGE by June 2021. What this will do for the trading price remains to be seen.

The Finance Block

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