While the market is down today, Dogecoin (DOGE) seems to have taken a bigger hit. For the last few days, Doge has experienced a series of losses that have pushed it down market cap rankings. It is down one position and now ranks 21st. So what could be the possible reason for this drop? Could it be that Dogecoin (DOGE) has lost its attractiveness as an investment, or is it just another market correction? From a quick look at Dogecoin (DOGE), one can see that its market fundamentals are still solid. Most of the reasons behind its drop are short-term in nature.
The first reason for its drop is the news that the Doge team is not preparing the forms that would possibly see Dogecoin get listed on Coinbase. This has driven away short-term traders who were betting on a Coinbase listing to pump the price. However, as a member of the Doge developer team has clarified on Reddit, Doge could still get listed on Coinbase. It’s just that at the moment, the forms that they are required to fill are just not suited for decentralized, community projects like Dogecoin. Here is what this member of the developer team had to say about the whole Coinbase issue.
- We still intend to try to get listed on Coinbase.
- We just cannot do it in an automated fashion with their online Google forms, since they ask questions which do not apply to us. Ergo we are not “preparing” that submission, no, because we can’t.
A certain contingent of the community have translated that into something along the lines of “We’ve decided we don’t want to be listed, and aren’t going to try” – which is bullshit.So you say we’re “not preparing a listing form” as if we just decided “Naaaah.” – it really feels like a bunch of people here think we should just fill in answers like “ur mom” and “lol wow” for the answers that we can’t fill, and somehow that’d be better than trying to figure out another way through this (which may take some time and delay your ‘lambo’) – because hey at least we’d “be preparing a form.” The fact of the matter is, we still intend to try, we just can’t do it with their automated method.
Clearly, there is a window of opportunity that Dogecoin could get listed on Coinbase in the long-run. If at some point Coinbase decides to engage Dogecoin directly, chances are that they would list it. Besides, in the long-run, exchange listings will not matter so much to the value growth of cryptocurrencies. That’s because the number of fiat gateways for cryptos, including Dogecoin, are on the rise. In the long run, it is fundamentals that will determine growth, and Dogecoin has some of the strongest fundamentals in the market.
The other factor causing Dogecoin’s drop is the overall decline in the market. The crypto market has been quite bearish for the last 4 days. However, this is just a temporary situation. All markets go up and down, and the fact that the market has been depressed for a long time only means that at some point, it will rebound. Once that happens, Dogecoin (DOGE) will rise too. And since Dogecoin is a fundamentally strong coin, and has a strong community behind it, it’s only natural that its value will possibly rise faster than most of the other coins in a bull market.
In essence, Dogecoin’s drop from 20th to 21st is nothing but a short-term price correction. Upside momentum will ultimately return. It’s also noteworthy that Dogecoin has been relatively bullish for the last 3 months, and a correction was imminent. Traders were bound to start taking profits at some point and cause a correction.