Dogecoin Future in 2022 amid the Volatile Crypto World

Dogecoin is a meme coin with a history of over nine years. Not so long ago, the dogecoin future looked bright. Last year it was closing in on the $1 mark with an all-time high of $0.7376 recorded on May 08, 2021. But since then, it has been in a freefall, especially during 2022. But after the news of so-called DOGE’s godfather, Elon Musk acquiring Twitter hit the newsstands, Dogecoin’s price is rising. Currently, it is one of the few tokens showing a rise in price despite the darkness in the crypto world.

In the last 24 hours, Dogecoin’s price rose to $0.077 per data from CoinMarketCap. In the process, DOGE has become the 10th biggest cryptocurrency in the crypto world, with a sizeable market cap of just over 10 billion US dollars. The sheer volume of Dogecoin trade for the day stands at $1.1 billion, almost 150% higher than the previous day.

Why is Dogecoin Future Looking Bright?

There are several reasons for the rise in the price of Dogecoin, which is making its future look brighter than ever before:

  • More and more investors are making big transactions
  • Miner reserves are reducing
  • Long-term holders are increasing

Bigger Dogecoin Transactions Influencing the Price

On Sunday, we saw an overall 943 massive Dogecoin transactions, over $100 million. Compared to Saturday’s 505 transactions, the number was almost double.

Decreasing Miner Reserves

At the time of writing, the miner reserve for Dogecoin stands at 6.16 billion DOGE. The number is down by 32% YTD. A decreasing miner reserve means that most miners have cashed in their Dogecoins. Such a sharp drop in miner reserve in a short time happened during the launch of Dogecoin in 2013. But at that time, it was expected, but now it is a significant activity.

A Rise in long-Term Investors

Currently, 2.57 million addresses have been holding DOGE for over a year. The number is 40% more than YTD, as per statistics. At the same time, short-term holders have reduced to approximately 150,000. For the uninitiated, short-term holders are investors who hold cryptocurrency for less than one month. The fall in the number of short-term holders is drastic, considering just last year, the count was 876,000. The exit of short-term investors and entry of long-term investors is mostly a positive sign for a cryptocurrency.

Conclusion

At the time of writing, the entire crypto market is experiencing a downturn. However, DOGE is showing signs of recovery as the number of large investors is rising. Considering that in recent times, the crypto market has dipped below $1 trillion after reaching almost $3 trillion in 2021, we do need DOGE to do well in the volatile crypto market. Even though it has emerged as a meme coin, Dogecoin future looks brighter in 2022 than most other established cryptocurrencies.

Also Read: Is Dogecoin a Good Investment in 2022? Here are 5 Pros and Cons to Consider

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