YEREVAN (CoinChapter.com) – Ah, the golden days of bromance between Elon Musk and Dogecoin… Remember how the SpaceX and Tesla chief used to pump the coin anytime he tweeted about it? While they were hot and heavy throughout 2021 and 2022, the relationship seems to have gotten sour. Has Elon Musk abandoned DOGE after all? And if his allegiance is still in place, why aren’t investors as eager to jump on board? Here are several reasons.
As of Jan 29, DOGE dropped to $0.08, 90% below its record high of $0.73 in May 2021.
#1 Reduced Dogecoin Impact of Elon Musk Tweets
You can only yoyo the markets for so long. Initially, Musk’s tweets about Dogecoin led to significant market movements. Want examples? Let’s roll.
In Feb 2021, Musk tweeted about Dogecoin being powered by a supercomputer, “Dojo for Doge,” and encouraged large Doge holders to sell their holdings. On April 28, 2021, Musk tweeted “The Dogefather SNL May 8,” hinting at his upcoming appearance on Saturday Night Live. This tweet led to an increase in DOGE’s price from $0.26 to $0.34, marking an approximate 31% rise in a day.
Another significant movement occurred in October 2022, when Musk finalized his acquisition of Twitter. Between Oct 25 and Nov 1, 2022, the price of Dogecoin more than doubled. Those are just a few examples of the massive market impact.
However, recent events, such as the announcement of ‘X’ integrating payment platforms, had minimal impact on Dogecoin prices. This change indicates a diminished response from investors to Musk’s endorsements. Investors might have chosen to step back from Musk’s cryptic tweets and make investment decisions on their own.
#2 Shift in Investor Focus – From Musk To Market
Investors are increasingly basing their decisions on fundamentals rather than celebrity commentary. This shift indicates a maturing market where Musk’s comments no longer sway investor sentiment as strongly as they once did.
But WHY? Global geopolitical events, such as the Russia-Ukraine war, and the crisis in the Middle East between Israel and Hamas have played their role. They shifted the microeconomic climate and investors’ attention.
Additionally, the broader dynamics of the cryptocurrency market are evolving. Factors like regulatory developments and economic conditions are playing a more significant role in influencing prices than individual endorsements, indicating a shift away from the earlier Musk-driven Dogecoin narrative.
Is Dogecoin still deeply important for Musk? That’s for him and him only to cherish, because the broader audience is, thankfully, NOT peeping in his window.
#3 Emergence of New Memecoins – Bye, Dogecoin!
“Bread and circuses” keep people from revolting, as they say. The crypto market is not different. While heavy hitters like Bitcoin and Ethereum can be considered the “bread” of the sector, the memecoins are, no doubt, the “circuses.”
In memecoin years, Dogecoin is a veteran. Hardly as amusing as, say, HarryPotterObamaSonicInu, or Doge Gay Son (not kidding). The rise of numerous new memecoins such as PEPE, or Shiba Inu has diluted the focus on Dogecoin.
With a wider array of options, investor attention is spread across various assets, reducing Dogecoin’s monopoly as the premier memecoin and, by extension, the impact of Musk’s support for it.
In conclusion, while Elon Musk’s influence on Dogecoin was notable in the past, these signs suggest a reduction in his direct impact on the cryptocurrency. As the market evolves, it appears to be moving towards a more fundamentals-driven approach, less susceptible to the influence of individual personalities. And Thank Doge for that…
