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The top performer in October among the 150 digital assets in the CoinDesk Market Index was Dogecoin (DOGE), the meme token inspired by dogs that is frequently connected to Tesla and Twitter founder Elon Musk (CMI).
In contrast to the CMI as a whole, which increased by 7% during the month, the price of DOGE increased by 101%. The largest cryptocurrency by market value, bitcoin (BTC), rose 5.5% on the month, while ether (ETH), which came in second, increased by 18%.
Digital asset analysts ascribed the significant increase in DOGE to Musk's shocking $44 billion acquisition of Twitter, ostensibly because they believed the transaction might one day add value or utility to the Dogecoin blockchain and its corresponding cryptocurrency.
Musk said, "Call me the Dogefather," in a May 2021 performance on NBC's "Saturday Night Live." And in January 2021, Musk posted a picture of himself on Twitter cradling a Shiba Inu puppy, the type of dog that served as the inspiration for dogecoin.
Musk once proposed charging 0.1 DOGE every tweet, possibly in jest, possibly not.
According to a letter sent on Telegram on Monday by the digital asset investment group QCP Capital, Dogecoin increased "on the back of excitement over Elon Musk's takeover of Twitter. Musk's tweets have created price swings in the past, even suggesting using DOGE as payment for a Twitter subscription."
According to Katie Talati, head of research at the cryptocurrency asset management company Arca Funds, dogecoin's recent price increases "have very much been speculation-driven," akin to the madness surrounding meme stocks last year.
Talati remarked, "It's the same way as people trading GameStop and AMC. It’s a token that drove a lot of retail interest."
With a 96% return, Mask Network's MASK token, one of the components of the CMI index, was the second-best performer in October, closely followed by SushiSwap's SUSHI token, which increased 45%. The restructure was accepted last week by the decentralized autonomous organization (DAO) of SushiSwap.
The short squeeze last week contributed to Ether's monthly return. Following the Ethereum blockchain's Merge last month, which changed the network to a more energy-efficient "proof-of-stake" network, the cryptocurrency has benefited from new speculation. The modification significantly slowed down the blockchain's production of new tokens, which suggests a decrease in supply overall.
Although Bitcoin's return during the month was less robust, bulls were encouraged by the cryptocurrency's price rising above $20,000 for the first time in 18 days.
Given that more traders had bet against ETH than BTC, Talati ascribed ETH's performance advantage over BTC to "market structure" as opposed to "anything fundamentally shifting."
"Bitcoin doesn't really have a strong narrative right now, whereas ETH still does have the Merge narrative," according to her.
The ERC-20 token Rally (RLY), which fell 33% in October, was the CMI's largest loser.
The native token CEL of the bankrupt cryptocurrency lending platform Celsius Network fell 27% amid accusations that Alex Mashinsky, the business's former CEO, withdrew $10 million in the weeks prior to the company freezing user accounts.
The LUNC token from Terra Luna Classic, which also suffered a 31% loss throughout the month, may have dashed traders' dreams of a comeback after the network's failure in May.
During the month, LUNA, the native token of the Terra 2.0 network, the fork that resulted from Terra Classic, fell by almost 1%. Despite Interpol issuing a "red notice" for his arrest in September, its contentious co-founder Do Kwon refuted reports that he is eluding law enforcement in October. The goal of Terra's developers earlier this month was to boost user engagement with the token and the LUNA ecosystem.
What is in store for November? From an "advertising perspective perspective," Talati claimed that the World Cup would increase interest in sports-fan tokens like Chiliz (CHZ).
Similar to how Coinbase displayed a QR code during the Super Bowl in February, she claimed she "would not be surprised" to see cryptocurrency advertisements on banners across the stadium during games.
Dogecoin will probably keep riding speculative waves. "At the end of the day, there aren't like financial applications built on top of it," according to Talati.
By fLEXI tEAM