Dogecoin was among the hardest hit cryptocurrencies during the market crash of May 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 in June 2022. According to Be[In]Crypto research, DOGE closed the fifth month of the year with a market capitalization of around $11.39 billion.
This was a 35% decline from the opening day’s market value. On May 1, DOGE saw an impressive trading volume of $991.71 million which corresponded to a market capitalization of approximately $17.62 billion.
Source: Dogecoin Historical Data by CoinMarketCap
Why the decreasing market capitalization?
An overall bearish market which was deepened in the week of May 9 to 13 led to the sinking market capitalization of Dogecoin. Among others, economic factors that led to the sell-off of DOGE by its holders were rising interest rates, inflation, and the patronage of less volatile assets such as metals.
The number of large Dogecoin transactions reached a high of 2,400 at a price of $0.07 on May 12.
Source: DOGE Number of Large Transactions Chart by Into the Block
This corresponded with a large transaction volume of approximately $2.09 billion.
Source: DOGE Large Transaction Volume Chart by Into the Block
On May 12, DOGE opened at $0.08464 and reached an intraday low of $0.07004. Trading volume was around $2.63 billion and corresponded to a market capitalization in the region of $10.97 billion. This was a 37% dip in DOGE’s market value from May 1.
Due to the plummet in price that saw DOGE retest less than 10 cents per coin, there were no attempts of a recovery that could have taken its market value to the region of May 1.
DOGE price reaction
Dogecoin opened on May 1, at $0.1276, 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% decrease between the opening and closing prices of DOGE in May.
Source: DOGE/USD Chart by TradingView