Dogecoin’s price has actually dropped almost 10% following China’s declaration that crypto deals and services are prohibited in the country.
As China Declares Crypto Transactions Illegal, Dogecoin Plunges Almost 10%
According to a report from Bloomberg, China’s central bank has put out a statement saying that all crypto transactions and services are illegal in the country.
The reserve bank, called The People’s Bank Of China (PBOC), has actually revealed that the ban consists of activities like derivatives trading and exchange services provided by overseas companies.
Following the news, most of the cryptos have noticed a sharp drop in their price as investors panic sell. Dogecoin’s price has tanked almost 10%.
Here is a chart revealing the pattern in the price of the coin over the last day:
As you can see in the above graph, Dogecoin’s price was around $0.222 before the announcement, but it dived down sharply all the way to a $0.196 bottom after.
Since then, DOGE has actually recuperated a bit as its price is now around $0.202. Though, it’s not clear at the moment if that was it for the crash or if the price will move further down.
Bad Month For DOGE As Coin Loses Over 36% In Value
It has actually been a quite bad month for Dogecoin as the crypto has actually seen numerous relocations down in the duration resulting in a loss of over 36% in worth.
The below chart highlights how DOGE’s price has changed during this period:
During this duration, DOGE has actually likewise lost substantial trading volume as the coin has actually dropped to the number 10 cryptocurrency in regards to market cap.
Here is a table showing the top 10 coins by market capitalization:
As you can see in the table, Dogecoin’s market cap has actually decreased to simply $26 billion. Although this figure is $11 billion clear of the 11th largest cryptocurrency, DOGE’s place in the top 10 list could still be in danger if the coin keeps on declining like this.
The current state of the memecoin has actually made some think it might be slowing as its everyday deals count has actually likewise dropped to levels not seen given that 2017. This shows a lack of trading activity on the blockchain that hasn’t been seen since 4 years.
Some others think that the meme status of Dogecoin indicates it will when again blow up in appeal and make a returned ultimately.
