Dogecoin’s profitability is still on a decent level despite most recent market turmoil
The first memecoin in the cryptocurrency market, Dogecoin, is showing a decent level of profitability despite the correction in the cryptocurrency market. Compared to Bitcoin, DOGE lost less in value with adjusted volatility, according to IntoTheBlock.
As the data suggests, the memecoin’s profitability currently sits at approximately 53%, which puts Dogecoin far above the majority of the cryptocurrency market. Its biggest competitor in 2021, Shiba Inu is showing far less profitability for investors with 31%.
A return of fifty percent or more from a digital asset shows a healthy supply distribution and generally shows a stable future for the asset. Dogecoin’s profitability has long hovered around the 50% level, even though the asset has lost more than 80% since the ATH.
A relatively high level of profitability is caused by the volume of entries made by investors during the drawdown of the cryptocurrency. During its way down, DOGE gave investors numerous excuses for entry, including Elon Musk’s “promotional” tweets, Tesla’s urge to accept Dogecoin as a payment for EVs and other events that caused a surge in Dogecoin’s popularity.
Other on-chain indicators are showing short-term bearish trends with a decline in large network transactions and negative network growth, which currently sits at minus 0.15%.
Both factors are tied to the general trend on the cryptocurrency market, which lost billions in capitalization as more traders and investors are leaving the space for better times. In the last 48 hours, Bitcoin has dropped below $30,000, while currencies like Ethereum are losing more than 10% of their value.
