Dogecoin has become the most popular meme coin of all time. However, it, like every other cryptocurrency on the market, has received its fair share of blows. As a result, investor confidence in the meme currency has plummeted, prompting a considerable number of them to exit the asset. However, it appears that the worst is not over for Dogecoin, as tens of thousands more investors are withdrawing, depicting a fairly grim outlook for it, particularly in the short term.
Over the last year, Dogecoin has lost ground in terms of price, and this has bled into its investor base. As a result, a large number of investors have abandoned the meme coin. 40,000 DOGE holders have recently abandoned the cryptocurrency, according to the most recent batch of this migration.
Following news that Dogecoin had lost over 700,000 investors, this transpired over a ten-day period. It’s a direct result of a steadily falling price with no end in sight or reprieve in sight. After reaching an all-time high of $0.7 last year on the back of billionaire Elon Musk’s enthusiasm, the meme coin has struggled to maintain its gains. This has led to a loss of more than 70% of its all-time high in less than a year, and it continues to fall.
Dogecoin’s active user base peaked at around 4 million, the largest of any meme coin. However, as prices fell below $0.1, investors were forced to abandon ship or risk losing even more money.
More investors are expected to leave the meme coin in the coming weeks. This is based on the fact that short- and long-term indications suggest DOGE will continue to trend lower. As a result, investors will seek out more profitable coins.
The announcement that Elon Musk had been granted permission to purchase social media behemoth Twitter had caused Dogecoin’s price to skyrocket. Musk is a passionate backer of Dogecoin, and investors in the space expect that the billionaire will continue to push the Dogecoin cause on Twitter.
However, as time has passed and the excitement around Musk’s Twitter proposal has worn down, Dogecoin has returned to its regular trend of lower highs and lower lows. It had reached a high of $0.17 following the Twitter update but has since fallen down to $0.13.