The value of Dogecoin (CRYPTO: DOGE) Slumped up to 11% on Wednesday as yesterday’s pop wears off. Stocks are down 8.9% in the past 24 hours, down about 20% from their Tuesday high.
Dogecoin stocks rose over 40% early Tuesday after Elon Musk tweeted this Tesla will make some goods for sale with Dogecoin. Tesla’s CEO has been a major proponent of Dogecoin, and this is the first time he’s addressing any real benefit to cryptocurrency. That is, goods are a small utility and even that may not take long.
The shift in the second half of Monday and into Tuesday simply reflected the gains from Musk’s tweet. And considering that most of the cryptocurrencies have fallen this week, it’s no surprise that Dogecoin’s value plummets as it approaches the trading venue over the weekend.
Volatility is common with cryptocurrencies, but Dogecoin has been one of the most volatile since last spring. Values have skyrocketed, largely due to Musk’s tweets, but Dogecoin has been in decline since May as people are finding few uses for the coin outside of trading. That could be a challenge for this cryptocurrency in the long run, and with no real use for it, I’ll stay out of Dogecoin for the time being.
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