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Doge has shown a correlation with the stock market as the rest of the crypto assets. The ongoing sell pressure has been fueled by both macroeconomics and geopolitical tensions.
The Dogecoin price has gained 18.3 percent today to trade around $0.091524. The asset has gained popularity through Elon Musk who has been its godfather over the years. In one of the Twitter conversations, Dogecoin creator, Shibetoshi Nakamoto, has attracted Musk’s attention. Notably, Shibetoshi argued that Dogecoin is liked because “it knows it is stupid” And Musk replied that it has potential as a currency.
Dogecoin as a Currency
Musk’s tweets have in the past carried important predictions on Dogecoin. For instance, before the beginning of the last crypto bull market, Musk called for the Doge rally. Interestingly, the meme coin rose a hundredfold in a matter of a few weeks.
With his statement that Dogecoin has potential as a currency, the big question pops up. Currency for Earth or Mars?
Worth noting, that Musk has a solid background in the working of money systems. Remember he was in the top position for PayPal Holdings Inc before selling it to start Tesla Inc (NASDAQ: TSLA) and SpaceX.
Dogecoin as a crypto asset with notable holders, 4,826,018 as of today according to Doge.tokenview.com, has the potential to become a currency. Moreover, the emergence of Metaverse has given most altcoins utility.
However, the thought of Dogecoin as a legal tender might be far-fetched at the moment. Remember, the meme coin has an infinite total supply.
Nevertheless, it is prudent not to underestimate Musk and his backed innovation. The billionaire has made headlines with controversial ways of spending his money. According to Musk, Doge has a chance of becoming a currency.
“Fate loves irony. Dogecoin was invented as a joke, essentially to make fun of cryptocurrency. What would be the most ironic outcome? The currency that started as a joke in fact becomes the real currency. To the moon!” Musk noted in an interview.
The meme coin has seen its value drop approximately 90 percent from its ATH. According to market data provided by CoinGecko, Doge’s price is trading down approximately 77 percent and 33 percent in the past year and 30 days respectively through Thursday.
However, the coin has registered staggering gains of approximately 105998.5 percent from the ATL, seven years ago.
As the leading meme coin, Doge has a market cap of approximately $12,232,849,274 and a daily average volume of $1.7 billion. Notably, it is currently ranked at position 10 by market capitalization.
Nonetheless, Dogecoin price has shown a correlation with the stock market as the rest of the crypto assets. The ongoing sell pressure has been fueled by both macroeconomics and geopolitical tensions.
“It’s worth remembering that this is the first real-time crypto markets are being put to the test in a “market correction” driven by economic and geopolitical forces. The last time was driven by the pandemic where people were searching for an alternative and it kickstarted mainstream adoption,” YourPortfolio managing director Daniel Sekers said.