Dogecoin has seen a moonshot in 2021. This altcoin, also called DOGE, has witnessed a price rise of more than 4,500% in 2021 YTD (Year-till-date upto September 8, 2021).
On January 1, 2021, its price was hovering around US$0.004927. The meteoric rise in Dogecoin’s price started taking place during mid-April 2021. The DOGE price against the US Dollar shot up from US$0.07218 on April 13, 2021, to US$0.3539 on April 17, 2021. This means the price increased by almost 400% in just 4-days.
The exponential rise in price kept on for a month till it reached an All-Time High (ATH) on May 8, 2021, at US$0.7376. However, it couldn’t sustain the momentum and the price crashed by almost 50% to US$0.3854 (on May 12, 2021) in just 4-days. The downward price slide continued till it reached US$0.1607 during mid-July 2021. Since then the price has bounced back and is now hovering around US$0.2579 (as of September 9, 2021).
Currently, DOGE is the 8th largest cryptocurrency having a market capitalization of US$33.8 billion. Its total supply is 131,214,326,800 DOGE and the circulating supply is 131.21 billion coins of DOGE. As of September 9, 2019, the trading volume of DOGE in the last 24-hours has dropped by an alarming -51.20%.
After providing you with so much of stat, you must be still wondering should you still invest in the Dogecoins market or continue with cryptocurrency trading through a cryptocurrency exchange? Well, to understand that you must know what it is, how strong are its fundamentals, is Elon Musk responsible for its meteoric rise, what does the technical analysis say.
To help you decide on that life-saving question on the prospects of this digital asset, let me walk you through the different queries you have regarding Dogecoin (DOGE).
Dogecoin (DOGE) is one of the top 10 cryptocurrencies, in terms of market value. It comes with a funny and friendly brand picture. Its creator, a programmer from Oregon named Billy Markus, started it as a “joke” cryptocurrency so that newbies to the digital currency market can get introduced to the crypto market in a fun-filled way.
Dogecoin is open-source crypto, which is based on a fork of Litecoin. This “meme cryptocurrency” was named after the hugely popular Doge meme of 2013. It took just 3 hours for Billy Markus to create Dogecoin. He had himself admitted that he created it as a joke. Markus sold all his DOGE coins in 2015 to purchase a used Honda Civic car. It is learned that Billy Markus initially copy-pasted the core code of Bitcoin and then spent most of his “time making alterations to the client to make the text Comic Sans”.
Billy reasoned that a lighthearted coin such as Dogecoin will have a higher chance of adoption than Bitcoin. In fact, in 2021, it witnessed a meteoric rise in price. DOGE price increased from US$0.004974 on January 1, 2012, to US$0.2504 on September 10, 2021. This means the price of DOGE increased by over 4,435.03% YTD (year till date).
This has catapulted its market cap to US$33.8 billion, making it the 8th largest crypto currently. Though DOGE’s market cap is nowhere near that of Bitcoin, its market capitalization has increased by more than 33-times YTD (from around US$1 billion in early January 2021 to US$33.8 billion till now).
Many analysts point out that it was the optimistic tweets of Tesla CEO Elon Musk that triggered the DOGE price to soar to new heights in 2021. In fact, the glaring bias of Musk towards Dogecoin has also earned him his new name “DOGE father”.
With the tweets of Elon Musk making Dogecoin’s price skyrocket, many have started to compare it with the pump and dump strategy of the HNIs (High Networth Individuals) and billionaires.
This allegation has got a new meaning when Dogecoin co-creator Jackson Palmer compared his own creation to the worst parts of today's capitalist system, which is mired by corruption, inequality, fraud, and many more. According to him, the use of Dogecoin is an innovative way for the corrupt and greedy to limit the use of interventions such as taxation, regulation, audits, and many more.
He went on to call Dogecoin and the entire cryptocurrency industry an “inherently right-wing” and “hyper-capitalistic” technology. According to him:
“After years of studying it, I believe that cryptocurrency is an inherently right-wing, hyper-capitalistic technology built primarily to amplify the wealth of its proponents through a combination of tax avoidance, diminished regulatory oversight, and artificially enforced scarcity.”
Dogecoin has gained huge celebrity support. Some of the major supporters of DOGE are Tesla CEO Elon Musk, American Rapper Snoop Dogg, and rock musician Gene Simmon. These celebrities have expressed support for the meme coin time and again. These supportive tweets have helped to drive up the price of Dogecoin (DOGE).
To let know how the tweets of these celebrities helped the coin, here is an example:
In April 2021, Elon Musk expressed his interest in the coin by tweeting:
“Doge barking at the stars.”
It is this tweet that made many retail investors buy this dog-based meme coin. This huge buying spree made the DOGE price catapult from US$0.062 to US$0.078 in just 24 hours, causing a jump of over 20%.
Analysts believe that it is the cryptocurrencies such as Bitcoin BTC and Ethereum ETH that actually propelled Dogecoin’s value. On April 18, 2021, Musk tweeted a picture of the face of a Shiba Inu dog in a dust storm. He wanted to mean that the “dogecoin norm” was blowing over the “global financial system”.
A unique mix of endorsement by Elon Musk coupled with overwhelming support from retail investors and dealers helped DOGE price to reach its all-time high at US$0.7376 on May 8, 2021. However, since its ATH, the price has corrected by -78% to US$0.1607 till mid-July 2021. The price bounced back since this 90-day low and is now trading at around US$0.2579 (as of September 9, 2021).
To understand the worth of Dogecoin, it is important to know its origin and the modifications done thereafter. Let me walk you through this.
Dogecoin’s core code was copy-pasted directly from other crypto and then modifications were done. However, in the last few years, many changes have been made and in practicality, there are some real improvements.
Dogecoin was derived directly from the blockchain of Litecoin, which was developed by modifying the source code of Bitcoin. That’s why Dogecoin shares multiple common functional principles with the leading cryptos.
Some of the similarities are:
Though Dogecoin’s code was an exact copy of the Litecoin network, it has improved on various counts. Let’s take a look:
These are some of the practical improvements of Dogecoin virtual currency over Bitcoin Ethereum and many other leading cryptos. These benefits surely create many practical use cases for Dogecoin and put it as a better cryptos for usage than other leading cryptos. Therefore, it surely is a crypto to invest in. With the likes of Tesla CEO Elon Musk backing the project, DOGE is surely crypto to choose from.
There are ace investors like Mark Cuban who owns just US$494 worth of DOGE. He puts his faith more in Bitcoin and other altcoins than in Dogecoin. If you are a trader, you can use crypto news and the high volatility of DOGE to trade this meme-based internet currency on a daily basis to make money.
Yes, Dogecoin (DOGE) price can reach US$1 by the end of 2021, experts believe. You can expect its price to be anywhere from US$0.90 to US$1.07 per DOGE by 2021-end.
Analysts and experts believe that Dogecoin’s price will reach anywhere from US$1.5 to US$2 by 2025.
By 2030, the DOGE price is expected to reach anywhere from US$8.80 to US$9.87. The average price of Dogecoin by 2030 is expected to be US$9.04.
You can buy and sell cryptocurrencies against various fiat currencies (US Dollar USD, British Pound, Canadian Dollar CAD, South Korean WON, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, etc.) through a wide array of crypto exchanges (centralized or decentralized exchanges). Use Dollar Cost Averaging DCA strategy to invest in cryptos.
If you want to increase your investment explosively in the coming 5-to-10 years, buy crypto coins now. Keep an eye on the market news, price statistics, block times, blockchain news, and others to time your trading of Defi systems and tokens for maximum profit.
You can also diversify your crypto coin portfolio by including other cryptocurrencies such as Bitcoin Ether ETH, Bitcoin Gold (also called Bit Gold), Bitcoin Cash BCH, Basic Attention Token, Ethereum Classic, Binance Coin, Wrapped Bitcoin (some also call it wrap bitcoin or wBTC), USD Coin, Gemini Dollar, ERC20 tokens (created on Ethereum blockchain), nonfungible tokens NFTs, and others.
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