The meteoric rise of Dogecoin is one of the few exemplary performances that can be cited to symbolize the growing prominence of cryptocurrencies across the globe. Dogecoin, a product of a joke or satire, had gathered unprecedented pace in 2021, with the value of the coin crossing 7.5 cents in the initial months of the year. Later on, the coin has achieved its all-time high value by crossing 10 cents in April.
However, the coin could not sustain its market really. According to the latest news, the value of the coin has declined by more than 22%. This has led to a sharp decrease in its market capitalization from $34.97 billion to $27.22 billion within the last 24 hours.
The reason attributed to the crash in the value of cryptocurrency is strangely related to a car. On Saturday, a racing car with the Dogecoin logo crashed in the NASCAR race series. The car was being driven by Stefan Parsons and had sponsorship from the Springates, whose CEO is one of the enthusiasts of Dogecoin. Fortunately, the driver didn’t get any serious injury, although the same is not true for the Dogecoin, which suffered considerable loss in its valuation. After the crash, hashtags related to the crypto crash and Dogecoin started trending on Twitter even as memes of Dogecoin investors’ holding on to the ray of hope that it would bounce back started appearing on the platform in large numbers.
It will be challenging to talk exactly about the trajectory related to the forecast of Dogecoin in the future. This is because many complex factors are involved in shaping the trend. Among these factors, the tightening regulatory framework around cryptocurrencies will also have a telling impact on their market valuation.