Dogecoin investors are caught in the middle of the bear market just like all of the other cryptocurrencies. With the downtrend, investors across a number of digital assets have seen their profitability decline with most being in more losses than those who continue to make money. However, for a cryptocurrency like Dogecoin which still continues to enjoy the support of prominent personalities, its story is more in line with larger assets such as Bitcoin and Ethereum.
Majority Remains In Profit
The profitability of investing in Dogecoin had surged through the first half of 2021 when billionaire Elon Musk’s shilling on Twitter had sent the meme coin towards new highs. The gains from the digital asset had motivated more people to invest in DOGE, building a strong community behind it. However, even with the numerous price crashes and dips in the last year, the majority of holders still remain in the green territory.
Data from IntoTheBlock shows that 51% of all Dogecoin holders are still in the project. This is interesting given how other meme coins have fared in the space. A good example is the ‘Dogecoin killer’ Shiba Inu whose rise to fame was just as dramatic as that of its competitor. Presently, only 25% of all Shiba Inu holders are in profit and the vast majority continue to nurse losses.
DOGE trending at $0.06 | Source: DOGEUSD on TradingView.com
As for Dogecoin, although it is not by a large margin, a lesser percentage is in the loss. 46% of all who had invested are currently out of the money, while only 3% remain in neutral territory. Most of those holding bags of losses for the meme coin are usually those who had purchased the cryptocurrency after it had rallied. So basically, those who have held their tokens for less than 1 year are more likely to be in loss compared to those holding for longer.
Dogecoin Holds Steady
The price of Dogecoin has not fluctuated as wildly as some others in the space. In the past week, it has continued to trend around the $0.06 level and hasn’t deviated much from this path. Not even the weekend of low liquidity was able to change this course.
Given this, the meme coin has been one of the best performers of the recent bear trend. It has not lost as much compared to others in the bear market and still maintains a good profitability percentage for its holders, especially the diamond hands.
Even with the news of Elon Musk’s refusal to complete his purchase of Twitter, DOGE has not suffered as much as expected. Musk has continued to support the digital asset and last week, Dogecoin was accepted by his Boring Company for rides through Las Vegas.
This recent adoption has also helped Dogecoin maintain its price through the market downtrend. However, it is hard to tell how long the meme coin will be able to hold this level as it continues to trade at $0.0644 at the time of this writing.
Featured image from MARCA, charts from TradingView.com
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