Amidst the ongoing bull market in the cryptocurrency sphere, Scott Melker, renowned in the crypto community as the ‘Wolf of All Streets,’ has put forth an intriguing theory regarding the resurgence of mainstream demand for digital assets. Melker, a seasoned crypto expert, has postulated that the revival of genuine interest from non-crypto natives hinges significantly on the performance of Dogecoin (DOGE), the leading meme coin in the market.
Melker’s theory, expounded via social media, revolves around the premise that mainstream FOMO (fear of missing out) will rekindle when Dogecoin achieves a new all-time high (ATH). Drawing from observations of previous market cycles, he notes that the pinnacle of mainstream enthusiasm was characterized by the fervor surrounding dog coins and non-fungible tokens (NFTs). Melker points to a notable trend where individuals, previously unacquainted with cryptocurrencies, eagerly sought access to exchanges, particularly to invest in DOGE during the last bull run.
According to Melker, the resurgence of such fervor necessitates a resurgence in DOGE’s price akin to its remarkable surge in 2021. He contends that DOGE reclaiming its ATH would drive profits for existing investors and reignite enthusiasm among those on the sidelines, injecting fresh momentum into the broader crypto market.
While acknowledging Bitcoin’s attainment of new ATHs in the current cycle, Melker suggests that this alone has not been sufficient to capture the attention of mainstream investors. He humorously remarks on the absence of inquiries from acquaintances seeking advice on Bitcoin investments, indicating a lack of widespread interest compared to previous cycles.
The resurgence of meme coins and DOGE’s potential impact
Despite Dogecoin’s somewhat peripheral role in the current bull cycle, meme coins have again emerged as prominent narratives, attracting significant attention from retail investors. DOGE, in particular, holds the potential to become a focal point once more, especially if it experiences a parabolic surge leading to a new ATH.
In 2021, DOGE witnessed an astronomical surge of over 26,000%, culminating in an ATH of $0.7376. This unprecedented price rally was partly fueled by increased acceptance of the meme coin, exemplified by entities like the NBA team Dallas Mavericks adopting DOGE as a payment option. Therefore, the expansion of DOGE’s utility could prove pivotal to its performance in the current bull run.
Notably, Elon Musk, a prominent advocate for Dogecoin and CEO of Tesla, has hinted at the possibility of Tesla accepting DOGE as a payment method in the future. Such a development would undoubtedly catalyze bullish sentiment within the DOGE ecosystem, potentially positively influencing its price trajectory.
Current status and outlook for DOGE
As of the time of writing, Dogecoin is trading at approximately $0.1635, reflecting a decline of over 12% in the past 24 hours, according to data from CoinMarketCap. Despite this short-term setback, the prospect of DOGE reclaiming its ATH and the anticipated developments surrounding its utility could fuel renewed interest and contribute to the broader narrative of mainstream adoption within the cryptocurrency landscape.
Scott Melker’s theory underscores the potential significance of Dogecoin in reigniting mainstream enthusiasm for cryptocurrencies. As market participants monitor DOGE’s performance and await further developments, its role in shaping the trajectory of the ongoing bull market remains a subject of keen interest and speculation.