Dogecoin (DOGE) is among the most generally mentioned cryptocurrencies, alongside Bitcoin (BTC) and Ethereum (ETH). Because it got here into existence in 2013, it has made a number of runs into the broader crypto conscience, together with retail traders and celebrities alike.
The token at the moment ranks eighth among the many prime 10 cryptocurrencies sorted by market capitalization as per the data by CoinMarketCap. Regardless of its meme token standing, it is among the prime altcoins that piques investor curiosity within the cryptocurrency markets. Presently, it has a market dominance of 1.97% of your entire market, with a market capitalization of $25.46 billion.
DOGE is a meme token primarily based on the broadly common doge web meme that options the canine breed Shiba Inu on its brand. It was launched in 2013, solely 3 years after the primary Bitcoin was traded in change for pizza in Could 2010. This makes the meme token one of many early movers of cryptocurrency tokens.
Due to the Shiba Inu meme canine being its brand, it was marketed because the “enjoyable model” of Bitcoin. Regardless of its creation being the butt of a joke, Dogecoin’s blockchain additionally has its benefit particularly as a result of it’s primarily based on the underlying expertise of Litecoin (LTC), one of many prime 20 crypto tokens by market capitalization and buying and selling volumes. It has the identical expertise behind its proof-of-work (PoW) consensus mechanism. The token makes use of a script algorithm, and its low worth and limitless provide of tokens are its different important options. Presently, there’s a circulating provide of 130 billion DOGE tokens.
Historical past of Dogecoin
Dogecoin was created by Jackson Palmer of Sydney, Australia, and Billy Markus of Portland, Oregon, each of whom wished to create a enjoyable cryptocurrency that will broaden its attraction past the normal Bitcoin people. With that in thoughts, the coin was primarily based on the doge meme that depicts an image of Shiba Inu, a Japanese canine breed, sitting with paws folded over each other. The token and community had been created in just some hours. Each Palmer and Markus deserted the mission quickly after creating it. In a now-famous anecdote within the token’s historical past, Markus sold his entire stake in DOGE again in 2015 for the equal of a used Honda Civic — almost $10,000.
Since its inception in 2013, the token has sometimes traded within the sub $0.01 vary till 2018. For a brief length in early 2018, the asset’s worth hit $0.018 earlier than crashing to lower than a penny for a few years. Amid the crypto bull run that started within the 4th quarter of 2020, the coin rallied but once more. This led to its worth rallying again above the $0.01 mark in early January 2021 on the hype constructed across the token in subreddits teams like WallStreetBets.
Later in the identical month, the coin’s worth surged as much as $0.07 with 2 each day candles — a 48-hour time window. In early February, the token gained much more to commerce at $0.088, after which the worth dropped to $0.04 just a few days later. After this, for just a few months, the token’s worth consolidated earlier than going into one other worth rally earlier than Could this yr. Alongside the all-time highs of flagship cryptocurrencies like Bitcoin and Ethereum in Could this yr, even Doge rose rapidly to change fingers at almost $0.74 — its all-time excessive.Due to the stoop available in the market after Black Wednesday on Could 19, the worth of the token began falling in tandem with your entire altcoin market, leaving it buying and selling within the $0.20 vary on the time of writing.
Elon Musk and Dogecoin
Along with mainstream hype avenues like WallStreetBets that Dogecoin has been part of, probably the most vital advocates for the token has been billionaire Elon Musk, CEO of Tesla (NASDAQ: TSLA). The Musk impact is now probably the most well-known pseudo phenomena within the cryptoverse. Other than Bitcoin, the affect of his statements, actions and tweets has been the biggest on Dogecoin.
His tweets on Dogecoin have lined an enormous vary, from discussing the coin’s growth and its precise affect on the worldwide monetary system to posting an image from Lion King that had Rafiki holding Simba up in celebration of this beginning; in Musk’s tweet, his personal face changed Rafiki’s and the notorious Shiba Inu doge changed Simba’s face, which gave one other symbolic push to the token.
Utilizing Twitter, Musk additionally introduced that he has been working with the developer neighborhood of Dogecoin to boost and improve the community. He additionally has invited his followers to contribute to the event of Dogecoin’s community by sharing the respective GitHub hyperlink.
Why is Dogecoin Down?
Presently, DOGE is buying and selling at $0.197. This worth is greater than 73% down from its all-time excessive of $0.7376 on Could 8, 2021, which was just a few days earlier than your entire cryptoverse received slowed down by the market on Could 19 — a day extra generally often known as Black Wednesday within the crypto neighborhood. DOGE is down from its all-time excessive regardless of Musk’s look on “Saturday Night time Stay,” which created a ripple impact that’s dragged your entire altcoin market down.
Within the final 2 days, Doge has dropped to $0.1642 alongside Bitcoin, falling under the $30,000 mark. Nonetheless, in one other occasion of the Musk effect, the token has once more rallied to close the $0.20 mark, gaining greater than 19% within the final 24 hours.
Within the aftermath of the mainstream consideration that Dogecoin received by way of avenues like Nascar, Musk and Saturday Night time Stay, there have been many meme tokens that had been launched to try to duplicate the phenomenon related to DOGE. Considered one of these tokens is Shiba Inu (SHIB), which has seen quite a lot of inattention from traders because it claims to be the Dogecoin Killer. One other that additionally attracted Musk’s curiosity is Baby Doge (BABYDOGE).
Different cash in the identical sub-cryptoverse of meme tokens are Kisha Inu (KISHU), Dogelon Mars (ELON), UnderDog (DOG), Doge Token (DOGET), DogeFi (DOGEFI), Dogeswap (DOGES), PAW Token (PAW), ShibaCorgi Token SHICO) and even a CAT token launched by Carole Baskin of “Tiger King” fame. It’s potential these tokens may divert the curiosity of a number of the retail traders in DOGE in an try to duplicate good points that Dogecoin millionaires like Glauber Contessoto had due to being an early mover.
The place to purchase DOGE
As a result of DOGE is among the most mentioned cryptocurrencies, there are many avenues to purchase the token for each retail and institutional traders. A lot of the outstanding exchanges within the cryptocurrency area have listed DOGE as an asset on supply to customers of their platforms. Even main platforms within the conventional monetary markets area like Robinhood supply DOGE to their customers. The truth is, Robinhood revealed that 34% of its crypto income within the 1st quarter of 2021 has come from traders buying and selling in Dogecoin; that is extremely indicative of the quantity of retail investor curiosity that DOGE has.
Among the prime exchanges to purchase and promote DOGE are Coinbase, Gemini, Webull and Robinhood. These exchanges are primarily based within the U.S and have excessive liquidity, so you possibly can relaxation straightforward realizing your funds are in good fingers.
So, is Dogecoin Useless?
Presently, Dogecoin’s creators have been a lot mentioned by the mainstream neighborhood due to their feedback on the business as a complete. One of many creators — Palmer — has taken to Twitter, saying that he would not return to cryptocurrencies as, regardless of the claims of decentralization within the cryptocurrency market, the business is “managed by a robust cartel of rich figures.” In a reaction to Palmer’s rant, Markus — Dogecoin’s different co-creator — stated Bitcoin doesn’t actually do something and that he has put his own money in a savings account and never DOGE itself.
Regardless of the token exchanging fingers at a major price variance from its all-time excessive, it’s not straightforward to conclude whether or not the token and the hype round it are lastly lifeless. Regardless of this drop in worth, the token has been topic to constant consideration from mainstream media shops and traders alike.
With Musk leaping on the DOGE wagon but once more and revealing that he personally owns Dogecoin, Bitcoin and “some Ethereum,” he’s rekindled the market’s curiosity within the asset. Even the deodorant model Axe lately launched a restricted version 48-hour “crypto scent” with a “dank musk,” calling it the Dogecan. Strikes like these by massive companies are proof of the truth that the curiosity in Dogecoin hasn’t dwindled though its worth has.
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