Dogecoin Crypto Skyrockets To 1.17 Billion Exchanged: What Is Happening?

As Dogecoin, the famous cryptocurrency inspired by a dog meme, shows a trading volume of $1.17 billion in 24 hours, the crypto sphere is questioning. The rapid fluctuations of Dogecoin, combined with a sense of curiosity and distrust, reveal a dynamic that intrigues as much as it worries. But beyond the numbers, what is really happening in the universe of this crypto full of surprises?

A colossal volume, but declining

Dogecoin is not at its first explosion. On October 21, it peaked at $12.87 billion in significant DOGE transactions.

This figure, while impressive, masks a decline. Since October 16, Dogecoin has recorded a drop in its transactional volume, thus entering a downward phase after reaching peaks around $0.1499.

The question is: why this huge spike in volume, followed by a sudden decline? To understand, we must closely examine the origin of these movements. On one hand, the major crypto whales, these massive wallets, seem to play a crucial role in buying and selling millions of DOGE in a single transaction.

This type of manipulation often stimulates the interest of retail investors who, driven by fear of missing an opportunity (the famous FOMO), join in this frenzy. However, when the whales withdraw, the volume drops swiftly, revealing a base of investors far less substantial than expected.

Data also shows a 7.54% drop in transactional volume in a single day, an important indicator.

This could signal that, despite the excitement around Dogecoin, some institutional players are reducing their positions, or that demand among retail investors has begun to weaken, which could herald a period of calm for DOGE.

The popularity of Dogecoin: meme or growth engine?

Dogecoin is an oddity in the crypto universe. Born as a joke, it has become one of the most popular cryptos, thanks to its humorous and accessible image, and, of course, the support of influencers like Elon Musk. But the question remains: is this popularity sustainable, or is Dogecoin just a fad?

The current trend shows that Dogecoin benefits from a loyal user base, but its fundamentals remain fragile. Unlike other cryptocurrencies like Bitcoin or Ethereum, Dogecoin has no specific use case or groundbreaking technological development in sight.

This reality weighs on its long-term viability and raises questions about the stability of its price, especially when we observe a decline in significant transaction indicators.

However, it would be unfair to reduce Dogecoin to a mere joke. Its ability to attract attention and gather an active community gives it a certain resilience.

Users, charmed by the quirky side of the crypto, continue to support it, even in times of decline. Moreover, the rapid fluctuations of Dogecoin make it a favorite asset for traders who take advantage of its volatility to attempt quick gains. Meanwhile, bitcoin is bouncing back again.