Dogelon Mars needs no introduction, yet it needs an introduction. Despite being one of the top performers of 2021, the memecoin maintains its value of nothing. The Dogecoin-inspired token might be highly in demand at the moment.
Still, its utility is as good as that of any other crypto at the end of the day.
Dogelon Mars won’t take off
When a coin happens to be valued at $0.0000008264, no one really cares about it. But because this meme token’s name is associated with two of the most prominent crypto personalities, people do notice it.
Named after Dogecoin and Elon Musk, the coin managed to rally by 4,276% within a month back in October 2021.
However, since then, it has come down by 64.15%. But yesterday’s rise placed the coin back in investors’ observation. ELON rallied by 11.7% and closed right at the 200-day Simple Moving Average (SMA).
The meme coin had already lost 50 and 100 day SMA back in January and tested the 200 day SMA as support. Another close above it would enable the altcoin to recover soon.
This is very important if Dogelon Mars intends on bringing back investors to the network. ELON holder’s activity is at its highest usually when the coin is trending. Like Shiba Inu holders, it diminishes in periods of bearish movement and revives when the meme coin rises.
Consequently, of the 131k investors holding ELON, only 486 are currently active on average.
Less active investors lead to lesser activity on-chain, which leads to a lack of flow of assets. In the last two months, the number of transactions on-chain has dropped 658 from 3.6k. And as a result, the 24-hour transaction volume also fell to $3 million at an average of $90 million.
Even the whales that occupy 75% of Dogelon Mars’ 1,000,000,000,000,000 (1 Quadrillion) supply have been silent. Transaction volumes haven’t breached the $4 million mark in weeks.
Thus while the memecoin may look alluring, it is just another shiny object that is not and probably will never be gold.