The price of DOGE is down this week despite its roadmap updates, and Polkadot has knocked it out of the top 10 cryptos on CoinMarketCap. Avalanche (AVAX) is also gaining ground in #12.
Dropping under $0.07 per token, the Dogecoin market capitalization is now approximately $9.2 billion, down 91% from its all time high valuation in May 2021 when Elon Musk went on Saturday Night Live.
Its closest meme coin rival Shiba Inu is also down 87% since October 2021, now ranked #16 with a market cap of $6.6 billion.
Investor interest in new meme coin presales is at high levels however, with Tamadoge (TAMA) raising over $575,000 in the past few days – part of Dogecoin’s losses may be the result of holders divesting into the newest meme coins without a market cap in the billions, and with more room for growth.
Why is Dogecoin Dropping?
The late July release of Dogecoin Core 1.14.6 hasn’t helped the DOGE price establish a new uptrend. That upgrade contained various under the hood technical fixes for its blockchain and UI, such as lowering the dust limit, and reducing lag by improving stuck transaction detection.
Continued support from Elon Musk also hasn’t been provided a bullish catalyst – the Dogecoin price today is 15% lower than when Musk tweeted that SpaceX merchandise would be able to be bought with DOGE, like Tesla merch.
Elon recently appeared on the Full Send podcast, repeating that he was supporting Dogecoin, giving one of his reasons as it ‘has memes and dogs’. Upcoming meme coins like Tamadoge also have those things, so its possible the billionaire will back other meme tokens with more upside potential.
Dogecoin is arguably overvalued, and dropping out of the top 10 coins is a reflection of that – as Robinhood CEO Vlad Tenev tweeted, Dogecoin still doesn’t outperform TradFi payment processors like Visa as a means of exchange.
Tenev did praise the low transaction fees of Dogecoin but stated it would need to fix several issues if it can fulfill its use case as ‘the future currency of the internet and of the people’. One of those was increasing the transactions per second (tps) to beat that of a typical debit card transaction.
That failure to really deliver yet on its main use case despite having one of the highest valuations of any cryptocurrency asset could have resulted in some holders exiting their positions and jumping ship to new crypto projects.
Tamadoge (TAMA) aims to be ‘the play to earn Dogecoin’ – adding a different type of utility as the rewards token of an NFT game, with a similar concept to CryptoKitties but in which players raise and train virtual Doge pets then do battle with them to earn crypto.
Tamadoge is a deflationary #cryptocurrency whereby users can battle to climb up the leaderboard by
gaining Dogepoints.Users with the most Dogepoints at the end of each month will be able to claim their winnings from the monthly Dogepool (Think of all that #crypto !) pic.twitter.com/PPx4sm8ApL
— Tamadoge (@Tamadogecoin) August 7, 2022
The main aspects of the crypto markets that attracted the attention of the mainstream in the 2021 bull run were Doge memes, play to earn crypto games (and more recently move to earn), the metaverse and NFTs. Tamadoge aims to combine all of those for mass appeal.
Dogecoin captured the hearts of many retail investors with its memes but after its explosive bull run there was little reason left to hold onto it – more than a year after it topped out, Dogecoin still has little real utility or long term value as a cryptocurrency other than pumping when Elon Musk mentions it – and those price spikes have been getting smaller in size over time.
DOGE also has an infinite supply and as a result of inflation its total supply has increased from 100 billion at launch to 132 billion today. Tamadoge has a lower and fixed maximum supply (2 billion) and is deflationary – with a 5% token burn when players spend TAMA to mint new NFT pets and feed them.
Read more about the project at tamadoge.io.
Related
Tamadoge - The Play to Earn Dogecoin
- '10x - 50x Potential' - CNBC Report
- Deflationary, Low Supply - 2 Billion
- Listed on Bybit, OKX, Bitmart, LBank, MEXC, Uniswap
- Move to Earn, Metaverse Integration on Roadmap
- NFT Doge Pets - Potential for Mass Adoption