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Why Is Dogecoin Falling Today?

Dogecoin (CRYPTO: DOGE) traded 1.74% lower at $0.22 over 24 hours leading up to early Friday morning.  What’s Moving? The meme cryptocurrency has fallen 13.46% over a seven-day trailing period. 

Benzinga · 09/24/2021 04:33

Dogecoin (CRYPTO: DOGE) traded 1.74% lower at $0.22 over 24 hours leading up to early Friday morning. 

What’s Moving? The meme cryptocurrency has fallen 13.46% over a seven-day trailing period. 

Against larger cryptocurrencies Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) — DOGE declined 2.23% and 0.1% respectively. 

Since the year began, DOGE has risen 3772.31%.

See Also: How To Buy Dogecoin (DOGE)

Why Is It Moving? DOGE is slightly underperforming the wider cryptocurrency market, with major coins beside Bitcoin trading mostly flat at press time. The global cryptocurrency market cap rose by 1.8% to $2.17 trillion.

DOGE attracted moderate interest on Twitter at press time. It was mentioned in 1,257 tweets, while BTC was mentioned in 6,797 tweets and topped the list of top 10 mentions compiled by Cointrendz.

Cryptocurrency market sentiment, as tracked by Alternative’s Bitcoin Fear & Greed Index, signaled “Fear” on Thursday. This according to some analysts is a bearish sign.

“​​Bitcoin lost its momentum before the greed level was hit, when another market crash happened, and the Fear and Greed Index fell right back into the fearful levels,” said Arcane Research in a report, as per CoinDesk.

See Also: Why Is Shiba Inu Outperforming Dogecoin Today?

On the DOGE side, even with prices trending down, on-chain metrics indicate that the cryptocurrency has seen growth with mining profitability rising almost 9,500% since the beginning of the year to its all-time high hit in May, as per BitInfoCharts data.

Similar growth was also visible in fees paid to DOGE miners. DOGE total fee rose from $390 on Jan. 1 to a peak of $220,000 in early May — a rise of a whopping 56,310%.

However, a decline in transaction activity, not seen since 2017, has taken place on DOGE’s blockchain, with daily transactions dropping as low as 15,400 on Sept. 19, as per BitInfoCharts.

Earlier in the year, transactions had hit a high of almost 140,000. The decline in transactions comes even with increased adoption. 

Read Next: Institutional Investors Are Preferring Ethereum Over Bitcoin, Says JPMorgan