Shift in momentum, Dogecoin
* FOR THE RECORD, I OWN 2.75Ɖ *
Dogecoin has been slowly chipping away at its Bitcoin ‘dominance’ for over a year — a losing battle of course — Bitcoin has always been the King of the crypto market. This “chipping away” has been happening at a relatively steady pace since it’s peak in relative strength in May, 2021. This chart clearly shows that shift in momentum, and dominance.
But why?
As economies go, the DOGE economy is no different — there are many factors involved in its ebbs and flows. I’d like to list off a few reasons that may possibly explain the shift we’re witnessing on this chart.
Interesting Note:
This smooth steady shift in momentum might suggest an inverse correlation between the two.
Momentum Shift, Why?
It’s not hard to tell that Dogecoin has really grown up over the last year, and needless to say it seems to be helping it relative strength against Bitcoin. On a final note, this isn’t written in distaste for Bitcoin, I’ve only just grown to understand that Dogecoin is a stronger candidate than many people realize.
Dogecoin has been slowly chipping away at its Bitcoin ‘dominance’ for over a year — a losing battle of course — Bitcoin has always been the King of the crypto market. This “chipping away” has been happening at a relatively steady pace since it’s peak in relative strength in May, 2021. This chart clearly shows that shift in momentum, and dominance.
But why?
As economies go, the DOGE economy is no different — there are many factors involved in its ebbs and flows. I’d like to list off a few reasons that may possibly explain the shift we’re witnessing on this chart.
Interesting Note:
This smooth steady shift in momentum might suggest an inverse correlation between the two.
Momentum Shift, Why?
- Sentiment: The Dogecoin movement has an energy unlike any other. In 2021, we saw the brunt of how powerful that sentiment can be. This energy has since gone from a roaring boil, down to a simmer — with many supporters realizing that Dogecoin is not just about making money — it is money.
Bitcoin’s sentiment has gone from bad to worse, with institutional investors realizing the “Store of Value” mantra was somewhat of a façade. Bitcoin, like all other cryptocurrencies, is a hedge against centralized corruption and poor reserve management. It will mot retain it’s value from purchase to sale. Furthermore, Bitcoin is inflationary until the last Bitcoin is mined in the year 2140. - Marketing: Coins cannot pay for their own marketing, that’s a nonsensical idea. It’s also clear that they shouldn’t even if they could — coins are only medium of exchange.
However, there are quasi ‘brands’ associated with each respective coin, brought on by the crowd they attract. For Bitcoin, the brand is anarchistic capitalism, while Dogecoin has become more geared toward humility. Surely we can see why these two coins are inversely correlated to some degree — their cultures contrast in many ways. - Upgrades: While this topic is too long to cover completely, one point to note is that Dogecoin developers have recently published “libdogecoin” which has catapulted development in the periphery of the flagship Dogecoin Core software. This advancement might be what we’re seeing with the most recent “curling up” of the Dogecoin’s relative strength.
- MyDoge Mobile Wallet: This has been huge for Dogecoin over the past 6 months. This Dogecoin wallet has a very simple, with a innovative design that has caught the interest of thousands of users. The mobile app has made Dogecoin accessible to everyday folk who may have not had the technical expertise to use the Dogecoin Core wallet. We can imagine that this self-custodial wallet is slowly becoming discovered in the App stores, and being used increasingly for the purposes of commerce and interpersonal exchange.
It’s not hard to tell that Dogecoin has really grown up over the last year, and needless to say it seems to be helping it relative strength against Bitcoin. On a final note, this isn’t written in distaste for Bitcoin, I’ve only just grown to understand that Dogecoin is a stronger candidate than many people realize.
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