Dogecoin: prospects for a cryptocurrency meme?
To understand which side to take, let's look at history and statistics. What is the value of cryptocurrency and what factors influence its value growth?
Dogecoin is one of the oldest cryptocurrencies, having appeared in 2013, but its founders Billy Marcus and Jackson Palmer did not put any idea into its creation. As the creators admit, the asset was released as a joke, and the name of the cryptocurrency is a reference to a popular meme of the time (a picture of a dog breed shiba-inu and an internal monologue in the form of text).
It is noteworthy that the founders themselves have left the project and are now working in another field. Palmer works as a product manager near San Francisco, and Marcus is a software engineer at an educational company.
In a recent interview with Bloomberg, Billy said that he sold his Dogecoin coins back in 2015 to buy a used car. And no, it was neither a Rolls-Royce nor a Lamborghini, but just a Honda Civic. At the time, cryptocurrency was valued at $0.00012 per coin. In 6 years, Marcus could buy an entire fleet of cars with those coins - Dogecoin has grown by 2,700 times.
In any expert reviews among the main investment tools were called , , , , but certainly not Dogecoin - the cryptocurrency took its place in the top 100 by capitalization, grew and fell in parallel to the market, not attracting much attention to his person.
Everything changed at the beginning of 2021, when traders from Reddit, who had previously made noises on the stock market, turned their attention to the digital asset. They spoke with one voice about the undervaluation of the coin and the need to raise its value. As a result, thousands of traders began to buy DOGE. The currency was fueled by Elon Musk, who decided to popularize the currency with his tweets.
Dogecoin dynamicsOn May 8, 2021, Dogecoin reached its all-time high of $0.73 per coin (up 8100% in 4 months).
You can say that the current price of the coin (rolled back to $0.32 after the market collapse) is the result of traders and Musk participation, that Dogecoin is not able to compete with the top altcoins, but it is better to look at the facts and statistics:
Among the main prerequisites for further growth of Dogecoin are the following factors:
Traders from Reddit initially planned to bring the value of the cryptocurrency to $1, so further attempts of a plunge with the participation of Ilon Musk is possible, but also a strong correction is not excluded, especially given the negative mood of the top investors (Mike Novogratz, CEO of Galaxy Investment, Barry Silbert, head of Grayscale Investments).
However, oblivion is unlikely for Dogecoin. The cryptocurrency stormed to the tops and suddenly became in demand, so companies are unlikely to give up their support for the altcoin. Investors actively use DOGE to pay for goods and services.
Popularity on the World Wide Web is considered an important factor in terms of growth. And Dogecoin is a confident leader here. On April 16, the asset set a historical record for the market - 392 thousand mentions per day. With the fall of the market, the popularity of the cryptocurrency gave up slightly, but Dogecoin is second only to Bitcoin in terms of mentions in Twitter.
Bitcoin, Dogecoin and other cryptocurrencies.