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What Does Dogecoin Rally Mean For The Overall Cryptocurrency Market?

April 16, 2021 2:14 am
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What Does Dogecoin Rally Mean For The Overall Cryptocurrency Market?

Dogecoin (DOGE) has rallied 353.77% over a seven-day trailing period, touching an all-time high of $0.29 on Thursday night, and the spike could bode well for the overall cryptocurrency market.

Is Doge A Bad Boi? Some on social media have long expressed concerns about DOGE’s upward movement, citing the harm a joke asset garnering mainstream attention could cause to the cryptocurrency community at large.

Citing Doge's inflationary supply compared to Bitcoin's (BTC) limited supply, a  post on r/Cryptocurrency claimed "Dogecoin is NOT a smart longterm investment."

“Think about that. Each minute, 10,000 DOGE have to be bought just to keep it at the same price,” u/EthereumDream said.

Another poster noted that just a single address owns 28% of all Dogecoins in existence and “that alone should worry anybody.”

DOGE traded 80.03% higher over 24 hours at $0.23 at press time. BTC traded 1.86% lower at $62,027.70.

In the past Reddit users have expressed worry about Musk’s frequent tweets on DOGE and expressed the fear that this may lead to serious damage.

Doge Good For Altcoins: According to some, the money that is flowing into Dogecoin can prove a boon for the entire cryptocurrency market.

Popular trader and strategist Kaleo thinks the current DOGE pump could lead to an eventual flow into other so-called altcoins.  

In the past, Kaleo has noted Doge’s movement independent of a boost from Tesla Inc (NASDAQ:TSLA) CEO Elon Musk.

The Alt-Season Is Here: Even as BTC hit all-time highs this week, it has slipped in terms of market dominance. At press time BTC market dominance stood at 52.3%. 

The runners up in terms of market dominance was Ethereum (ETH) at 12.77%. DOGE has a market dominance of 1.35%. ETH traded 0.83% lower at $2,449.50.

An analyst pointed out that the loss of BTC dominance is an indicator that the “altcoin season” is here. Michaël van de Poppe predicts a “very bullish” summer for altcoins.

Read Next: Why Is Maker Cryptocurrency Skyrocketing?

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Cryptocurrency Markets

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