Dogecoin, a dog-themed parody cryptocurrency with strong ties to tech billionaire and Twitter owner Elon Musk, looks to be struggling to acquire enough traction for a significant upward swing.
DOGE fell victim to a price retracement that took it all the way down to $0.0705 the next day after peaking at $0.0749 on January 5.
Since then, the altcoin has staged a mini-rally to recoup some of its losses, allowing it to gain 2.4% in value in the last seven days.
According to Coingecko tracking, at the time of writing, Dogecoin is changing hands for $0.0719, and despite its early troubles this year, it is able to maintain its position as the eighth largest cryptocurrency thanks to its market size of $9.90 billion.
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Dogecoin is still one of the most popular crypto assets
DOGE continues to establish itself as one of the well-known digital currencies, despite the fact that it is still far from repaying its loyal investors with large profit through a massive price increase.
BitPay, one of the world’s major cryptocurrency payment processors, recently announced that the meme token is the fourth most popular transactional currency on its platform.
According to data provided by the business, Dogecoin accounted for 10% of all transactions handled in December 2022, nearly tripling its 6% tally in June.
The memecoin came in fourth place, trailing Bitcoin (41.81%), Litecoin (25.51%), and Ethereum (11.53%).
This trend could be regarded as an indication that an increasing number of people are adopting digital assets as a means of exchange.
Along these lines, CoinSwitch, a renowned Indian cryptocurrency trading platform with over 20 million users, stated in its study that DOGE was among the most popular virtual currencies owned by its clients.
The Irrefutable Musk Effect
As time passes, it becomes clear that Dogecoin may live and die with the self-proclaimed “Dogefather” Elon Musk, whose social media comments on the memecoin cause immediate price movements.
For example, after Tesla CEO Elon Musk concluded his contentious acquisition of social media behemoth Twitter in October 2022, DOGE’s price increased significantly, from $0.0720 on October 27 to $0.1572 on November 1.
Musk suggested the notion of accepting Dogecoin as payment for Twitter’s Blue services months before acquiring the company.
