Dogecoin slumps despite Elon Musk’s tweet, Robinhood’s high dependence
A dark cloud seems to be hovering around Dogecoin despite receiving another endorsement from Tesla CEO, Elon Musk and Robinhood’s disclosure of high DOGE transactions.
At the time of writing this report, the meme coin traded at $0.241627 USD with a daily trading volume of about a billion dollars. Dogecoin is down by about 4% for the day.
The sixth most valuable crypto has a market value of about $31.2 billion with a circulating supply of over 130 billion meme coins.
Some days ago, Elon Musk, the world’s second-richest man and arguably the most influential voice in the crypto-verse posted a tweet captioned, “Release the Doge!”. However, that wasn’t able to keep short-sellers away, with the coin trading below its critical support level of $0.25
Bearish sentiments remain strong despite recent reports from Robinhood, a leading American trading app, revealing that about 34% of sales from its digital asset transactions came from trading activities with DOGE in Q1. In the previous quarter, the share was just 4% percent.
The company also disclosed it could be hurt “if the markets for dogecoin deteriorate or if the price of dogecoin declines, including as a result of factors such as negative perceptions of dogecoin or the increased availability of dogecoin on other cryptocurrency trading platforms.”
Still, market commentators argue that Musk holds a strong influence in the crypto market with his enormous interest in Dogecoin, pushing the altcoin to a record high of about 0.7376 some week ago. However, dogecoin has forfeited a large part of its profits, no thanks to record profit-taking and fear of stiff regulation.
Dogecoin is a type of digital asset that is decentralized, thus permitting peer-to-peer digital transactions. This means you can send money online with much ease. It is usually referred to as “the internet currency.”
It is different from BTC’s proof-of-work protocol in many ways, one of which is the scrypt technology. The fast-growing altcoin also has a block period of 1 minute, and the total supply is unlimited, meaning that there is no limit to the amount of Dogecoin that can be mined.
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