Why Dogecoin Still Attracts Long-Term Buyers

The price of DOGE has risen by more than 140% in the last 24 hours and the altcoin currently occupies the 7th rank according to market capitalization. The volume of perpetual barter transactions reached a new ATH of $ 36.99 billion, which has increased by 1877% since April 12, and all Dogecoin HODLers are profitable at the current price level.

The important question for retailers is: is it some speculation or leverage? During the ongoing altcoin rally, retailers are clumsy and the best altcoins are too smart down. In the case of DOGE, less than 12% of HODLers who own DOGE for less than a month are profitable, just like the HODLers of a year and earlier.

What distinguishes DOGE from other alternatives is that 61% of DOGE HODLERS own the coin for more than a year. This is clearly not the case for most other top altcoins that offer double and triple digit gains. Most altcoins have a high short-term ROI, low long-term ROI, and interestingly, DOGE is the opposite. Sometimes the risk-reward ratio is skewed and out of pocket when it comes to altcoins pumping. The fact that DOGE has consistently had a higher market capitalization than Tesla for more than a year makes it clear that it is not merely speculation that causes the price to rise.

Since April 13, 2021, DOGE’s price has risen from $ 0.07 to $ 0.34. DOGE’s short-term ROI is as shown in the graph below.

Based on the chart above, the short-term ROI for DOGE is relatively higher compared to other top altcoins. The long-term ROI has been negative for DOGE in previous years. However, since Bitcoin’s rally in 2020 and Q1 of 2021, DOGE has made a comeback unlike DeFi tokens and most altcoins.

Demand for DOGE may be driven primarily by the early speculation of Elon Musk and Crypto Twitter, but the current price action and metrics have changed the price increase of DOGE to a sustainable demand. What is most interesting is that DOGE’s current correlation with Bitcoin is less than 20%. Despite that, when Bitcoin collapses, DOGE is pulling along with it, along with top altcoins.