Tesla CEO, Elon Musk’s favorite cryptocurrency, Dogecoin [DOGE] had been in the news all week following a significant price surge. However, the coin has been plummeting proving it was a victim of a pump and dump scenario.
Has Dogecoin’s Hot Streak Ended?
Over the years, Bitcoin, the first and the largest cryptocurrency has been dominating the crypto market. Even though thousands of other coins popularly termed as alternative coins or altcoins entered the market, Bitcoin continued its reign and still has its own fan base. However, last week, altcoins had taken over the crypto market.
The second week of July proved to be immensely eventful for altcoins. The price of several altcoins was seen soaring immensely throughout the week. While the price of these coins could have been fueled by the alt season, Dogecoin [DOGE] was outperforming prominent altcoins after a viral video.
TikTok user, James Galante posted a video urging other users of the Chinese application to invest as little as $25 in DOGE. Soon the video garnered half a million views as it suggested that one could get rich investing in the altcoin. The price of the coin was seen climbing up the ladder and witnessed an 89.5 percent weekly increase on 9 July 2020. Apart from the positive price change, the coin found shelter in several prominent cryptocurrency exchanges including, Bitfinex, Binance as well as WazirX.
Several in the community had been speculating that this was a mere pump and dump scenario. However, it seems like the community was right. On 9 July 2020, the price of DOGE hit a high of $0.00522. Over the last couple of days, the coin was seen plummeting. At the time of writing, the coin’s price has slumped to a low of $0.00362.
Dogecoin Following COMP Token’s Price Movement?
Last month, prominent decentralized finance [DeFi] platform, Compound Finance, released its very own governance token. Just a few days after its release, the token’s price witnessed a significant rise in its price. The coin hit an all-time high of $372.27 just days post its release. However, its upward price movement was disrupted and the token recorded nothing but consecutive dips. At the time of writing, the token was priced at $176.57.
Despite, the token’s downfall, Compound has continued its dominance over the DeFi space. While DeFi has a total of $2.28 billion locked, Compound alone accounted for $692.5 million of the total USD stacked at the time of writing.