Dogecoin (CRYPTO: DOGE) saw a major selloff during the latest downturn in the broader cryptocurrency market.
What Happened: According CoinMarketCap data, Dogecoin saw much more significant losses than all of the major cryptocurrencies. As of press time, at its price of 24 cents, the coin is now down 23.23% over the last seven days.
The coin has lost much more than its peers. Bitcoin (CRYPTO: BTC) is 14% down over the same time, Ethereum (CRYPTO: ETH) 18.65% and Cardano (CRYPTO: ADA) 15.73%.
Dogecoin’s apparent lack of a real use case and sound fundamentals make it a largely speculative asset where we can reasonably expect little capital to be stationed in hopes of long-term gains.
For this reason, Dogecoin holders are more easily spooked when losses arise, since a large portion of them are motivated by hopes of short-term gains rather than long-term vision.
A late August report also described Dogecoin as a dangerous speculative joke that is largely controlled by a handful of wealthy entities and sees almost no actual use.
At the time of the research, a single address held 28% of all DOGE; the top 11 addresses held 46% of the circulating coins; and the top 82 addresses held 64%. Such a distribution purportedly “centralized supply effectively creates a small cabal of players with […] the ability to dictate the Doge price at will.”