Blog

Key Takeaways

• Dogecoin’s worth surged 30% off the back of Elon Musk altering the Twitter emblem to the Dogecoin canine
• Meme season could also be over, nonetheless, our Analyst writes
• Open curiosity surged to its highest stage since November
• Musk is unfazed by a $258 million lawsuit accusing him of racketeering by pumping and dumping the Dogecoin worth

It’s starting to really feel like 2021 once more. 

A yr that was stuffed with facemasks and restrictions on how shut you can stand to any person could also be banished to the depths of our recollections for a lot of, but for Dogecoin traders, that was a cheerful time. 

The meme coin exploded onto the scene, returning over 3500% for traders as it surged from $0.004 as excessive as $0.73. 

The solely downside is that meme cash don’t precisely provide numerous worth. Predictably, Dogecoin subsequently collapsed as the bear market ravaged the crypto world in 2022. 

The days of Robinhood traders blindly punting obscure tokens with doggy logos had been over, and Dogecoin careened down, the occasion over as quickly as it started. 

Elon revives Dogecoin

But it’s 2023 now. And after simply over 1 / 4 of worth motion, Dogecoin has printed a 39% achieve. 

This was aided, by Elon Musk rolling back the clock with a superb old style Dogecoin joke. He modified the emblem of Twitter to the Dogecoin canine Monday, after all saying it on the platform itself. 

As promised pic.twitter.com/Jc1TnAqxAV

— Elon Musk (@elonmusk) April 3, 2023

Immediately, the worth jumped 30%. Prior to the endorsement, Dogecoin had been lagging the remainder of the market badly. While its worth was up 13% on the yr, Bitcoin and different cash have printed monumental good points off the back of expectations round rates of interest shifting to a extra dovish forecast. 

Looking at derivatives markets, the Elon impact was tangible right here too. Open curiosity soared to its highest stage since the FTX collapse last November, based on information from Coinglass. Open curiosity measures the quantity of open contracts that merchants have opened on the underlying asset. 

What occurs subsequent?

Trying to foretell the short-term worth of any meme coin is a idiot’s endeavour, but I do ponder whether the meme craze is over. 

Despite occasions of the last couple of days, this can be a very completely different market local weather than the hysteria of the stimmy-cheque-Robinhood period of 2020 and 2021. Interest charges have been hiked quicker than any level in historical past, tech and crypto have been pillaged, and inflation is spiralling whereas recession fears abound. 

It’s a unique world. Not solely that, but the novelty of memes, and crypto generally, has worn off. The Dogecoin story will not be a brand new one, the pumps and dumps now acquainted to all, maybe inciting much less FOMO whereas definitely attracting much less mainstream consideration than years previous. 

Numerous scandals have rocked Crypto over the last yr and its fame has undoubtedly taken a success. With the scale of the bear market so recent in traders’ minds, it is difficult to examine a situation whereby Dogecoin ramps up as it beforehand did. 

Then once more, this can be a meme, and memes don’t obey rhyme or purpose. I’ve by no means “invested” in memes, one thing which my pockets didn’t admire in 2020 and 2021, but maybe I simply don’t get it. 

Who is aware of with Elon anyway? Perhaps he actually does have plans to include Dogecoin into Twitter correctly. Or possibly he’s simply trolling, and Dogecoin is getting a fast day in the solar earlier than yet one more inevitable crash. 

Either approach, the newest Dogecoin pump by Musk reveals the billionaire will not be fazed by a $258 million lawsuit at the moment levelled at him. 

A Dogecoin investor accused him of working a pyramid scheme to assist the Dogecoin worth. Musk has been accused of racketeering to pump up the Dogecoin worth earlier than letting it crash. 

Musk’s legal professionals appear assured the case will probably be thrown out, nonetheless. 

Am contemplating taking Tesla non-public at $420. Funding secured.

— Elon Musk (@elonmusk) August 7, 2018

The time period market manipulation is thrown round quite a bit in crypto. It appears onerous to conclude that what is occurring right here will not be in that bracket, no matter that lawsuit, as frivolous as it could also be. 

I’m wondering how shut we’re to seeing a tweet saying “taking considering taking Dogecoin private at $1 a token. Funding secured” from the huge man myself?