It appears the only demand for Dogecoin (DOGE) is from speculators who buy it because the price is high.
Therefore, Dogecoin is caught in a speculative bubble. A speculative bubble occurs when speculators drive up the price of an altcoin by buying more and more.
Bubbles are unsustainable because the only thing driving up the price is the speculators. If the speculators stop buying the price collapses and the bubble bursts.
Hence, Dogecoin (DOGE) looks like a classic speculative bubble. For instance, I think the picture of a cute dog on the Dogecoin website drives at least part of its value.Read more