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- Meme based Dogecoin (DOGE) is finally slowing its steep rise
- A massive climbdown from rubbing shoulders with the top two cryptocurrencies on May 5
- Dogecoin daily transactions on Wednesday was just $5 billion
The cryptocurrency started as a joke, the meme-based Dogecoin (DOGE), is finally slowing its blitzkrieg. Before the slowdown, the crypto coin was doing a higher dollar value of daily transactions than Bitcoin (BTC) and Ether (ETH) combined.
Rubbing shoulders with the combined might of Bitcoin and Ether
Buoyed by the incredible surge in the value of transactions taking place on its blockchain, Dogecoin continued its surge for most of 2021. On May 5, the values of DOGE surged to $82 Billion. It was more than the combined values of the top two cryptocurrencies, 35 billion recorded on Bitcoin and $12 billion on Ethereum.
In December 2020, Dogecoin was doing a daily total of barely $10 million. Therefore it is a miracle that it was outdoing two of the best-known blockchains in the world. However, it got help from an unexpected source in the form of Tesla CEO Elon Musk. Social media also went into an overdrive creating a buzz for the meme-based cryptocurrency. Not a day passed when something related to the Dog based cryptocurrency was not on the internet.
Oversized average transaction all through the past month
Even though the values of DOGE remain higher than its December lows, a market retreat was witnessed in May. It suggests the steamroller phase for the cryptocurrency is finally over. From the all-time daily high of $82 billion at the start of May, it has fallen by 93%, and the figures on Wednesday was just $5 billion. The sharp fall was also visible in the DOGE’s average transaction, which fell from $1.16 million on Sunday to under $240,000 three days later on Wednesday-a fall of almost 80%. The average transaction all through the past month was oversized and revealed that large account holders primarily used Dogecoin.
Dogecoin blockchain values spiked erratically all through 2021; the most significant spikes were witnessed in mid-April on the run-up of 4/20. In all probability, it was an effort by traders to inflate the values artificially. The subsequent short-fall in network activity accompanied a 63% drop in the Dogecoin price throughout May as it fell from its recent all-time high of $0.73.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
