The doge market exploded after January 21, 2021. Coin Market Cap, a crypto data company announced a staggering increase in doge acceptance with a 1421% increase in trading volume and a 60% increase in prices that they brought the meme coin to record an unprecedented ATH in which it went up to 7.5 cents from 1 cent. However, the crypto community has seen an unprecedented drop for Doge from a market capitalization of $ 92 billion in May 2021 to a steep drop of $ 18 billion in January 2022. Dogecoin was born in 2013 to satirically corner the rise of bitcoin; but, over time, the token ended up as a meme ecosystem. Basically it was meant to reward anyone who created good content around doge; however, in 2021, it attracted the attention of Elon Musk and the rest is history. In May 2021, on SNL or Saturday Night Live, Elon Musk was the main guest and vehemently stressed that the extraction of PoW or Proof of Work could lead to a massive crackdown on the environment. He went on to admit that Tesla, who previously accepted the bitcoin payment, would cease that option citing environmental concerns. As a result, not only bitcoin but also doge were not spared from such whims and prices dropped by up to 40%. To further aggravate the situation, Musk has even admitted that doge is a frantic investment, causing further descent.
But these weren't the only reasons Doge saw such a negative aspect. The list of reasons responsible for the fall of Doge has not yet been exhausted. China's crackdown on all cryptocurrency mining, in fact, was also a reason for the further realization of the minimum price of doge due to PoW mining, just like bitcoin. All this corroborated the assertion of some cryptographic experts that the inflationary nature and the doge's consensus mechanism would come to haunt this cryptocurrency. The only difference here was the crackdown and the tweets from influencers simply sped up the process. After the ban, Doge strictly slipped down. Shiba Inu could be a potential doge killer with its ecosystem using ERC standards, meaning it can support smart contracts very well in the near future. At the same time, Shiba Inu, despite sharing the same use cases, is a deflationary token, meaning that the token's value would increase from time to time as token burning occurs. These aspects helped Shiba Inu to occupy 8th place as the top crypto, overtaking Doge, who earned 10th place. Over time, the Shiba Inu is very likely to achieve higher mainstream adoption of doge; however, at the moment, both cryptocurrencies are having a head-to-head competition. At the time of writing, doge is trading at $ 0.142437; however, the future of Doge depends a lot on euphoria rather than on a use case tested in battle. Since this cryptocurrency lacks the usefulness of a payment method, it has no use. However, even if the token wants to establish its reputation as a payment system, it must remain stable and not show strong volatility such as a sudden drop from 50% to 60%. The same has happened in the past and these concerns could hinder the traditional adoption of the doge as a payment network. However, if users want to make money for doing business on Reddit, it's a really good option to stick to in the near future. However, from an investment perspective, it would be much wiser to look for other battle-tested Altcoins to choose from in 2022. Also, don't forget to choose a hardware wallet to store all your cryptocurrencies securely.