RIP Doge?

After another massive price slump, some investors wonder whether the hype about Dogecoin is over.

Dogecoin continues to slide. The Memecoin also lost over 11 percent today compared to yesterday's trading day. While much of the Doge community on Reddit is taking free fall with humor, some are beginning to feel a sense of unease. For example, some users ask on Twitter whether Dogecoin might even be the new Wirecard.

Although the two cases are rather difficult to compare with each other, the question still remains whether the hype about Dogecoin has slowly evaporated. This assumption at least suggests Google Trends. After Doge exploded to a new all-time high a week ago, search queries rose dramatically, especially in the United States. At times, people searched for the meme currency more often than for the cryptocurrency bitcoin. After the ATH, however, the interest in Dogecoin sank and only recorded increased search activity on Dogeday and today's price slump.

From the data, however, it cannot be determined without a doubt whether the hype about Dogecoin is actually over. The core mantra of the community was always “Buy and Hodl” - regardless of the price. The fact that there are increased search queries for a drop in price is understandable and is only permissible as an indication of doubt.

Dogecoin creates its own use case

In addition to the fact that only 20 wallets are hoarding over 50 percent of the total amount in circulation, the missing use case is probably the main problem with Dogecoin. The Doge hype helped here too. Due to the popularity of Memecoin, companies use the corresponding hashtags on social channels to increase their number of followers. One example of this is the US snack manufacturer “Slim Jim”. Thanks to a broad-based campaign, the company has been able to increase its following on Twitter from 22,000 to almost 100,000 users since February. The content was aimed specifically at the Doge community. For Dogecoin, however, this is a game with fire. Because this use case is only based on the hype of the cryptocurrency. If this breaks away, many companies are likely to stop their campaigns. It remains to be seen whether this scenario will come true in the future, because it is well known that those who are said to be dead live longer.