Bitcoin And Ethereum Are Reassembling Again, But Why Is Dogecoin Down?

The Crypto market last week was shot with the flash crash that occurred. Top coins Bitcoins and Ethereum went down as well with the crash, and the meme coin Dogecoin followed suit. Dogecoin, like most others, had spent the last month recovering from two-month lows. Dogecoin recorded loses up to 18% with the September 5th crash, sending the mem coins value back to month lows.

Hours after the crash, dogecoin was recovering back a good percentage of its value that it lost. The crash had a large effect on the crypto space, leaving the top 10 coins struggling to recover some value. Although bears used the situation in the market to push the price even lower, the close of the midweek trading market has left Bitcoin and Ethereum recovering in a nice upward trend. Yet, Dogecoin remains in the red zone. Why is this so?

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“Sorry Dodge coin, but remember that your are a meme coin”

What has always been used against dogecoin is that it is the last of functionality. This isn’t surprising, considering the nature of the creation of the infamous meme coin. But now being a top 10 crypto coin by market cap, many are debating about the usefulness of the meme coin. Dogecoins success is largely thanks to the hype created around it’s top supporter Elon Musk. But, this could also be a downfall for the coin. As Elon’s influence in the crypto space has decreased, so has the value of dogecoin.

In May, Dodgecoin peaked at $0.73. Then along with the rest of the space crashed into what seemed like the start of a bear market that had lasted two months. Top cryptos in the market have since recovered. With most nearing their previous all-time highs like in the case of Ethereum. While others surpassed that and seen new price heights like Cardano and Solana.

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Investors are losing faith in dogecoin because of its inability to regain even half of its previous all-time high. Hold sentiments have been low, which saw investors dumping their holdings as the price struggled. This has continued to today, where the value of dogecoin has seen no significant rise.