Dogecoin was one of the hardest hit cryptocurrencies during the May market crash, which led to a massive drop in the market capitalization of the popular meme-inspired coin.
Dogecoin remains the largest meme-inspired digital currency by market capitalization as of June 2022. Be. According to[In]Crypto research, DOGE closed the fifth month of the year with a market capitalization of around $11.39 billion.
This was a drop of 35% from the opening day’s market price. On May 1, DOGE saw an impressive trading volume of $991.71 million, roughly corresponding to a market capitalization of $17.62 billion.
Why is market capitalization declining?
An overall bearish market that deepened in the week of May 9 to 13 led to a sinking market capitalization of Dogecoin. Among others, the economic factors that led to the sell-off by holders of DOGE were the rise in interest rates, inflation, and the protection of less volatile assets such as metals.
The number of large Dogecoin transactions reached a high of 2,400 on May 12 at a price of $0.07.
This corresponds to a large transaction volume of approximately $2.09 billion.
On May 12, DOGE opened at $0.08464 and reached an intraday low of $0.07004. Trading volume was approximately $2.63 billion and was in line with a market capitalization in the region of $10.97 billion. This was a 37% drop in DOGE’s market cap since May 1.
Due to the price drop, DOGE saw a retest of less than 10 cents per coin, with no recovery attempt that could have taken its market value into the May 1 region.
DOGE Price Feedback
Dogecoin opened at $0.1276 on May 1, reached a monthly high of $0.1373 on May 5, tested a monthly low of $0.07004 on May 12, and ended the month at a trading price of $0.08586.
Overall, this equates to a 30% reduction between DOGE’s opening and closing prices in May.