The market continues its bearish trend, and bitcoin (BTC) continues to hold below $4000. However, in spite of this market wide crash, Dogecoin (DOGE) is holding up strongly. It has defied the odds, and though it isn’t making any astronomical gains, it is performing quite well relative to the rest of the market. This is despite the fact that there aren’t any big news related to it in the last few days, or anticipation of any major any news coming up soon. In that case, what is driving Dogecoin (DOGE)?
One of the factors that could be pushing up Dogecoin (DOGE) is its use value. One thing makes Dogecoin stand out is the fact that it has real-world adoption. Unlike most altcoins that are still struggling to gain traction in terms of real-world adoption, Dogecoin (DOGE) already got there. Almost all of Dogecoin’s daily volumes come from actual usage. While crypto usage may not be at the level of use of conventional payment methods, adoption is growing and Dogecoin is among the leaders.
As millions of transactions happen through Dogecoin, they act as an anchor to the value of this coin. This means that even as the market remains bearish, there is a utility demand aspect to Dogecoin this is supporting its value, in spite of the heavy bearish pressure driving prices down.
To add to its high utility value is the fact that Dogecoin (DOGE) is priced at a very low price. It is very easy for anyone to buy hundreds of thousands of Dogecoin (DOGE) without breaking the bank. This doesn’t mean that there aren’t hundreds of other coins that are valued at pennies. The difference is that most of them don’t have much utility in the market, which makes accumulating on them a counterproductive move, no matter how cheap they appear to be.
Dogecoin (DOGE) backs up its low price, with real utility, hence the higher demand even as the market remains heavy in bear territory. Relative to other altcoins that are priced at the same level or even lower than Dogecoin (DOGE), this coins takes the crown.
Dogecoin could also be supported by its strong community. Dogecoin’s community is not so much into the HODL culture that is characteristic of crypto. Dogecoin holders constantly tip using Dogecoin (DOGE), as well as use it in Doge sports such as the Doge racer game. This willingness to spend is a source of value for Doge because it gives it the utility it was meant to have from the word go. It is meant to be used as a currency, and it is actually used for this purpose.
Most cryptos are designed for this very purpose, but most people only tend to HODL them, leaving them open to wild speculative swings. That’s because when everyone chooses to HODL a “currency”, it changes from being a currency to a speculative commodity that has no intrinsic value. This explains the increased stability of Dogecoin (DOGE), even as most altcoins bleed further. Dogecoin (DOGE) is a crypto that stands a good chance to keep rising all the way into the top 10.