Dogecoin: A tool of speculation or starter drug for crypto

Mark Cuban believes Dogecoin is fun, considers it a starter drug for beginners in crypto.
A senior cryptocurrency research analyst at Messari argues Dogecoin’s social sentiment and daily transactions are similar to Cardano.
Analysts note Dogecoin price remains at risk of decline, a breakout is possible only on a specific condition.

Ekta Mourya FXStreet

Mark Cuban, Dallas Mavericks boss recently commented on what happens to cryptocurrencies when speculators leave. Cuban addressed the state of Dogecoin, the starter drug for crypto. A senior research analyst at Messari identified similarities between Dogecoin and Cardano, sharing his findings.

Also read: Dogecoin and Shiba Inu bleed in Pre-FOMC crypto snoozefest

Dogecoin is the starter drug of crypto: Dallas Mavericks Boss

Billionaire entrepreneur and Dallas Mavericks boss Mark Cuban commented on Dogecoin. Cuban argued that Dogecoin is a tool of speculation and the state of the meme coin is what it would be like, when “all speculators leave.”

Cuban spoke about Dogecoin in a recent episode of the Full Send podcast, describing Dogecoin as the “starter drug for crypto.” Cuban chose this title for the meme coin as it is cheap, has a high utility, and can be used for making payments.

In 2021, Cuban accepted DOGE as a payment for tickets and merchandise, in addition to cryptocurrencies like Bitcoin and Ethereum,

Cuban was quoted on the podcast,

When people were buying and trading Dogecoin a lot, we were making thousands of dollars a week, ten thousand a week, here and there. So it was real money for us. But at the same time, once people stopped speculating on it, people lost kind of the vibe for it.

Cuban believes speculation was the leading factor for Dogecoin price decline.

Analyst believes Dogecoin is similar to Cardano

Tom Dunleavy, Senior Cryptocurrency Research Analyst at Messari identified similarities between Dogecoin and Cardano. Dunleavy notes that Dogecoin’s market capitalization exceeded $75 billion during the bull run. Dogecoin’s daily transactions and social sentiment are similar to Cardano.

Despite the meme coin’s market capitalization decline from $75 billion to $8.2 billion, Dunleavy argues that DOGE has bucked the trend of other networks. DOGE increased transaction volume and active addresses during the recent market downturn.

FXStreet analysts believe Dogecoin price is at a dangerous level and identified key price levels to watch for a shift in the meme coin’s trend. For more information, check the video below:

Author

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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