What took place
Dogecoin (DOGE -9.59%) is still in the top ten cryptocurrency rankings by market capitalization, but it is fighting to stay there. However, Dogecoin has dropped today with a 24-hour loss of 7.3% as of 4 p.m. ET, moving it into 10th place, one position below Polygon (MATIC -2.09%).
As of 4 p.m., Polygon has also decreased, dropping 1.9% over the last 24 hours. However, due to excellent fundamentals, notably in terms of the network’s NFT sales, this is also a token that has recently outperformed its large-cap rivals considerably more significantly. Sales of non-fungible tokens on Polygon’s layer-2 scaling network far exceeded Ethereum in January, generating a lot of interest in this fast-growing project into February.
Dogecoin has significantly underperformed in comparison to Polygon and other utility-based tokens at the moment due to a relative lack of catalysts and some very widespread selling pressure.
What then
You already guessed it, Elon Musk was the main motivator for the recent increases in the price of Dogecoin. Naturally, the Dogecoin community reacted quickly to this news and assumed that any future payments network would have to run on Dogecoin.
But here is where certain meme initiatives, like Dogecoin and Polygon, differ from one another. Speculative catalysts may cause short-term increases, and when the market is buzzing, there is full-on enthusiasm for these ventures. However, Dogecoin might severely underperform on days like today when there isn’t much to be excited about in the market.
So what?
I am persuaded by Polygon’s recent basic success, which includes 1.5 million NFT sales on its network vs 1.1 million sales on Ethereum in January. But not with Dogecoin.
As a result, there may be more discussion on how and why Dogecoin continues to rank in the top 10 cryptocurrencies in terms of market value. I’m not sure if any meme tokens, whose value is mostly based on hype and conjecture, belong on the list of the major utility-generating players.
Dogecoin is now one position away from joining its meme token buddy Shiba Inu in the top-15 rankings. For better or worse, I believe that Dogecoin will probably continue to fall in the rankings because whenever the next bull market rise starts (who knows, it may already be), investors prefer substance to excitement.