Doge Days Over? Cryptocurrency Sees Major Correction

Dogecoin DOGE/USD is seeing a major correction after a long bull run that left most onlookers astonished.

What Happened: According to CoinMarketCap data, Dogecoin’s price plunged by over 37% from its April 22 high of $0.4212 to $0.2644 earlier today.

The coin is also down 15.10% over the last twenty-four hours. It was traded at $0.2632

Dogecoin left market observers dumbfounded and disconcerted when its recent bull run pushed its market cap to a high of nearly $54.45 billion, higher than that of blue-chip companies Ford Motors at $46.31 billion and Kraft Heinz's at $48.84 billion.

Bloomberg pointed out at the time that “no one thinks these blue-chip stocks are all that comparable to Dogecoin, a fringe asset with no real purpose beyond being a joke on social media. But the similarity of their market values underscores the boom in cryptocurrencies.”

Why It Matters: Dogecoin recently saw two-digit gains multiple times, spanning from 20% to as much as 86% within 24 hours.

Overall, CoinMarketCap charts reveal that the coin’s value grew by 435% from its April 13 price of $0.0707 to its April 16 price of $0.3779 before reaching its April 20 record price of $0.4212 — 496% up from the starting price. In other words, the coin is still down only in the short term.

Yesterday Dogecoin creator Billy Markus tweeted that while he "would like DOGE to do well" he gives more importance to the community being a "force for good."

I’ve said this from the start: I would like DOGE to do well, but much more important to me is that the community is a force for good.

I don’t “own” Dogecoin. My stake is quite small for a creator.

I’m just the guy who happened to make it, who will tell you things as they are.

— Shibetoshi Nakamoto (@BillyM2k) April 20, 2021

For this reason, he advised anyone looking to invest in Dogecoin — or any other crypto — to do their own research, and pointed out that the price is driven just by speculation and not utility.

See also: How to Buy Dogecoin (DOGE)

"There are cool things happening in this space, but the valuations aren’t related to that. They are just people speculating. Always have been. [...] Perhaps someday people will buy crypto for the utility and we will see the true impact of it," he added.

Despite the current downtrend, the DOGE community seems to remain optimistic.

Image: Horsebalm via Reddit