Scott Melker’s Theory: Dogecoin’s Potential Role in Reigniting Mainstream Demand for Cryptocurrencies
Amidst the unyielding bull market in the cryptocurrency sector, renowned crypto expert and self-proclaimed “Wolf of All Streets,” Scott Melker, has put forward an intriguing theory concerning the revival of mainstream interest in digital currencies. Melker believes that non-crypto natives are likely to re-enter the market once Dogecoin (DOGE), the leading meme coin, achieves a new all-time high (ATH).
Melker’s theory revolves around the notion that mainstream fear of missing out (FOMO) will resurface when DOGE sets a new ATH. He refers to historical market cycles, noting that the peak of mainstream excitement was characterized by the hype surrounding dog coins and non-fungible tokens (NFTs). Melker recalls how individuals, uninitiated in cryptocurrencies, rushed to secure exchange access primarily for Dogecoin investment during the previous bull run.
According to Melker, a DOGE price surge similar to its remarkable 2021 performance is necessary to reignite excitement among existing investors and those on the sidelines. By reaching a new ATH, Dogecoin could generate substantial profits for current investors and draw the attention of potential entrants, ultimately injecting renewed momentum into the broader crypto market.
Despite Bitcoin’s new ATHs during this cycle, Melker argues that it hasn’t been sufficient to captivate the interest of mainstream investors. He humorously notes a significant decrease in queries from acquaintances seeking investment advice, implying a noticeable lack of widespread enthusiasm compared to past cycles.
The Resurgence of Meme Coins and DOGE’s Impact
Meme coins, including Dogecoin, have re-emerged as popular topics among retail investors. With its potential to surge once more, DOGE holds significant significance, especially if it experiences a parabolic rise leading to a new ATH.
In 2021, Dogecoin experienced an extraordinary price surge of over 26,000%, reaching an ATH of $0.7376. This unexpected rally was partly driven by increased adoption of the meme coin, such as the NBA team Dallas Mavericks accepting DOGE as a payment option. The expansion of Dogecoin’s utility could potentially impact its performance in the current bull run.
Moreover, Elon Musk, a prominent advocate for Dogecoin and CEO of Tesla, has hinted at the possibility of accepting DOGE as a payment method in the future. Such an announcement would likely generate bullish sentiment within the Dogecoin ecosystem, potentially influencing its price trajectory positively.
Current Status and Outlook for DOGE
At the time of writing, Dogecoin is trading approximately $0.1635 on major exchanges, representing a decline of over 12% in the past 24 hours based on data from CoinMarketCap. Despite this short-term setback, Dogecoin’s potential to reclaim its ATH and the anticipated developments surrounding its utility keep hope alive for investors.
Scott Melker’s theory highlights Dogecoin’s potential impact on rekindling mainstream enthusiasm for cryptocurrencies as market participants closely observe its performance and await further developments.
