Yerevan (CoinChapter.com) – The Asian Investor, a veteran market analyst, voiced his opinion on the future of Dogecoin (DOGE), predicting a looming burst of the Doge bubble and calling it a “meme, and a meme only.”
Is Doge more than a meme?
The joke cryptocurrency was originally aimed to mock Bitcoin when software engineers Jackson Palmer and Billy Markus created it back in 2013. A lot has changed since then. However, as the ‘joke’ acquired an authentic market cap of $100 billion at its highest. 2021 was especially fruitful for the meme token, as it logged a 12,000 percent gain.
What drove Doge to such highs? The Asian Investor asserted that Dogecoin managed to get into the top 10 cryptos only due to the hype some influential proponents create on social media platforms. One of them was Elon Musk, the famous billionaire entrepreneur and the self-proclaimed “Dogefather.”
Read more: Is Elon Musk Manipulating Bitcoin and Dogecoin Market? Researchers Weigh In
The analyst stated that Dogecoin is devoid of any value other than that public attention. If the hype should fade, so would the price, which would drop as far as zero when the Dogecoin bubble bursts.
Dogecoin on the edge
The Asian Investor divided the life span of a typical financial bubble into 5 stages: beginning when the new product or technology first emerges and attracts a lot of public attention and ending to the point when the “euphoria wears off” and the panic selling kicks in.
He believes Dogecoin is now in the third stage, where the token has gone more mainstream, and many traders are still in the buying frenzy. Moreover, Dogecoin was listed on Coinbase on May 15, giving it an additional crutch.
However, considering the 20-30 percent extreme daily volatility of DOGE, the hype will not hold the value for long, the analyst predicted. The simple fact of Mr. Musk hosting ‘Saturday Night Live’ and calling the token a ‘hustle’ on-air was able to drop the price by 30 percent. In his view, such a frenzy-like upside mood won’t sustain for too long.
Read more: Dogecoin Among Victims of the Elon Musk-led Bitcoin Crash
Where is DOGE Today?
The token took 7th place in the list of the largest cryptocurrencies, with a market cap of $49.4 billion as of the early European session Friday. Doge was trading at $0.38 after it briefly dropped to $0.21 on Wednesday, amid the overall bearish crisis in the crypto-market.
Read more: Bitcoin Price Recovery Cut Halfway as China Ban Worries Bulls
Despite the warnings, the famous Doge proponent Mr. Musk is sticking to his guns, as he announced that he will not be selling any of his Dogecoin.
The Asian Investor called Dogecoin a “meme and a meme only.” It creates nothing and has no value to it, other than the hype created around the token on social media. Therefore, the analyst predicted a soon death for the crypto. He asserted that the price would drop to zero soon enough if the bubble-burst progression he estimated pans out.
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