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Dogecoin's performance over the years has indeed been impressive, supported by an active community and frequent charitable activities. Compared to Bitcoin, it has lower transaction costs and faster confirmation times, which are tangible advantages. But to be honest, its technological innovation appears to be weak.
An unavoidable topic is Elon Musk's influence. Every statement from this entrepreneur on social media can directly trigger fluctuations in Dogecoin's price. He has repeatedly expressed interest in using Dogecoin for everyday payments and even considered applying it in SpaceX projects, which undoubtedly injects imagination into the market. However, this over-reliance on personal influence also harbors potential risks.
The issue is that Dogecoin's price is too closely linked to emotional sentiment. When a well-known figure changes their stance, investors often make decisions based on emotion rather than project fundamentals, making it more of a speculative tool than a stable asset. Additionally, slow technological iteration and the widening gap with other crypto projects raise long-term competitiveness concerns.
Overall, the future of Dogecoin depends on whether its practical applications can truly materialize, rather than short-term hype and rhetoric-driven movements.