After taking the spotlight thanks to a 980% pump on January 28, Dogecoin (DOGE) briefly made it into the top 10 of the rankings by market cap for the first time since 2015 for the first time since 2015. As the massive pump lost momentum and traders quickly took profits, it seemed investors would move past the meme-based cryptocurrency and find something else to invest in.
The pump initially started when exchanges prevented retailers from buying more GameStop and AMC stock on Jan. 28. Fueled by the Reddit discussion group r / Wallstreetbets, the army of investors turned their attention to silver and a selection of ‘cheap’ cryptocurrencies.
On January 28, Twitter user “WSB Chairman” asked, “Did Doge ever make a dollar?” to his 750,000 followers. That was enough to kick-start the monster rally, despite Dogecoin hasn’t had any protocol upgrades or developments since 2015.
The 68% retracement that followed the $ 0.087 peak resembled Bitcoin (BTC) ‘s sharp decline after the December 2017 crash, except this time, instead of 50 days, it only lasted 24 hours.
Multiple social media influencers and streamers expressed dissatisfaction with buying from the top, an indication that the temporary speculative frenzy was over. After hovering around $ 0.03 for most of January 30 and January 31, DOGE managed to produce an additional 80% pump in less than three hours.
It is almost impossible to find the exact trigger for those events as there are multiple social networks including private Telegram groups and trading signal apps.
Reddit’s r / SatoshiStreetBets currently has 213,000 active users, and after the DOGE outbreak, a memepost from user Woke_AF_Populist quickly climbed to the most upvited list.
There seems to be endless support from the Dogecoin fan base, including Tesla’s CEO and founder Elon Musk. The lack of a concrete use case for the meme coin certainly begs the question of whether r / WallStreetBets members will jump from traditional markets and embrace the generally unregulated ethos of the cryptocurrency sector.
Regardless of the outcome, measuring social activity will now become a norm instead of an alternative indicator.
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