Despite experiencing a price rut lasting for the majority of 2014, Dogecoin has clawed its way back up the cryptocurrency market cap charts. After rising 18% on September 4, The Dogecoin price has continued its climb. Over the past week, the Dogecoin price has climbed more than 40%. Now, Dogecoin sits fifth among altcoins in total market cap. CCN examines the Dogecoin price charts.
September has been a great month for altcoins. In general, most top altcoins have seen their market caps increase, even as the Bitcoin price has struggled. Top 20-altcoins such as BitShares, Darkcoin, BitcoinDark, and Nxt have all experienced double-digit price increases. But perhaps no altcoin price increase has been as dramatic as that of the Dogecoin price.
On August 25, the Dogecoin price fell to 22 satoshis, the lowest Dogecoin price CoinMarketCap has ever recorded. The 22 satoshi Dogecoin price marked a new floor in the prolonged Dogecoin price decline. The price decline began on February 12, when the Dogecoin price peaked at 285 satoshis, which gave Dogecoin a $90 million market cap. In less than a month, the Dogecoin price had fallen more than 50% to 124 satoshis on March 9. The cooling off period continued throughout the summer, reaching its coldest point during the heat of August. Dogecoin, whose market cap had once approached $100 million, possessed a market cap just above $10 million.
However, since August 25 the Dogecoin price has rallied considerably. On August 26, the price rose to 29, satoshis, and it fluctuated around that point for the next week. However, on September 2, the Dogecoin price took off. It climbed steadily to 35 satoshis on September 5 and then shot up to 43 satoshis the next day. The next day, Dogecoin began a brief decline that took the price back down below 40 satoshis. Nevertheless, the price rebounded quickly. At present, the price is 40 satoshis, giving Dogecoin a market cap of $17.3 million.
The Dogecoin price’s increase to 40 satoshis may seem insignificant to investors whose memories remain fixated on the days when the Dogecoin price was seven times as high. However, the price rally has increased the Dogecoin price by 40% over the past seven days, which is an incredible rally for a top-10 cryptocurrency, particularly one who spent most of the year in a price rut.
Dogecoin Investment Advice
Dogecoin is a bit of a mixed bag for investors. Dogecoin’s inflationary distribution model places constant sell pressure on the coin, but Dogecoin’s outlook is bolstered by its overall health and passionate community. CoinGecko’s comprehensive metric analysis algorithm ranks Dogecoin first among altcoins by a considerable margin. In fact, no altcoins place within 10% of Dogecoin. Litecoin ranks third with 66%.
Dogecoin’s CoinGecko score has increased 3% since September 5. Although Dogecoin’s community interaction has declined slightly over that span (at least according to the CoinGecko metrics), its liquidity score has increased from 47 to 58%, which accounts for the rise in Dogecoin’s comprehensive score. Investors should keep all these factors in mind as they consider Dogecoin for both their short and long-term investments.
Disclosure: The author does not have any investments or affiliations with Dogecoin.
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