What Happened to Dogecoin?

Dogecoin was one of the most popular cryptocurrencies to start the year. But ever since Elon Musk went on SNL, Dogecoin has lost 66% of its value.

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Over the last few months, Dogecoin, the popular cryptocurrency, has been trending downwards significantly. Much of the cryptocurrency industry has been selling off lately. However, Dogecoin specifically has really been underperforming.

Since the Elon Musk appearance on “Saturday Night Live,” Dogecoin is down roughly 66%. The joke coin has lost two-thirds of its value. I talked about this in the days following and how it was an important lesson to learn.

Whether you participated in it and made money, lost money, or sat on the sidelines and watched, the Dogecoin speculation was a perfect lesson on a typical bubble.

Investors who bought in the days leading up to that Saturday night expected Dogecoin to explode when Elon Musk mentioned it on T.V.

In reality, though, by that point, everyone had heard about Dogecoin and its incredible rally. So while buyers of Dogecoin expected the price to explode during that event, it looked as though that might be the peak of the bubble.

Once that night finally comes, and Elon Musk goes on TV, it’s going to be next to impossible to find somebody to buy the Dogecoin from you at a higher price than they could have bought ahead of time. Everyone who was going to invest in Dogecoin would have likely had the same thinking and bought before Elon Musk appeared on TV.

And it’s clear now looking at the chart, that’s exactly what happened. So if you’re wondering what happened to Dogecoin recently, it’s just continuing to sell off.

Why is Dogecoin continuing to sell off?

It’s definitely impacted by the momentum of the whole crypto industry. Dogecoin is heavily correlated to Bitcoin and the rest of the cryptocurrency industry. And the crypto industry has had its fair share of headwinds in recent months.

However, because Dogecoin is more speculative, it’s prone to be more volatile. Plus, you’re also seeing investors who have held on this long finally give up and sell.

The cryptocurrency industry is extremely volatile. And although there is a tonne of potential if you want to invest for the long term, those who try and speculate short-term, are likely to get burned.

So rather than speculate on Dogecoin, I’d consider taking a long-term investment in this top Canadian stock.

A top Canadian crypto stock

If you’re bullish on cryptocurrency, I’d strongly consider the top Canadian growth stock, Galaxy Digital Holdings (TSX:GLXY).

Galaxy Digital is a financial services company that’s leading the way in the cryptocurrency industry. The business has several segments taking advantage of all the new excitement and momentum around the industry.

What’s most attractive about Galaxy Digital is that it’s a play on the cryptocurrency industry as a whole rather than the price of a specific currency or two. This means that as the industry naturally gets more popular, Galaxy Digital will continue to see impressive growth.

With segments such as asset management, prime brokerage services, market making, and even a mining operation, Galaxy Digital is positioned well to take advantage of this massive revolution.

This is why it’s such a great stock to make a long-term investment in and much safer investment than Dogecoin.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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