Clouds of speculations and confusion surround Dogecoin, which began as a joke and now enjoys the honor of appearing amongst the top 10 cryptocurrencies. A lot of hype surrounds this coin due to the sudden rise in its price and a cult following. You will be amazed to know that the dog meme coin has a market capitalization of about $44 billion, thereby earning the reputation of being the sixth largest cryptocurrency. This figure might entrap your mind into how and why this coin is valuable. Your questions and confusion will find appropriate answers in this blog.
Dogecoin- a brief introduction
Dogecoin’s foundation was laid by a software engineer, Jackson Palmer, who’s no longer associated with it. It all started when Palmer was working on his computer. He coincidently opened two tabs; one had an article about the best meme of 2013, and the other had CoinCapMarket’s website. As he switched the tabs, the idea of combining the two contents entrapped his mind, and he immediately tweeted about a new currency Dogecoin.
In response to Palmer’s tweet, Billy Markus offered to help him create “Dogecoin”. Finally, it was launched on 6th December 2013. A hacking incident soon after its launch affected the coin’s reputation. However, the Dogecoin community quickly recovered and provided refunds to the affected users. As far as its use case is concerned, some merchants accept it as payment; few others even use this meme coin to buy domain names and even household supplies. Primarily, the meme coin’s objective is to satirize the cryptocurrency community’s greed.
Why is Dogecoin valuable in the crypto world?
Certain factors led to the coin’s popularity, representing the image of a funny-faced dog, “Shiba Inu”. With this meme coin taking over the crypto market, you must be wondering about possible reasons for its success, so here are a few.
Dogecoin used as a charity case
Dogecoin’s popularity is due to its being a charitable source. The first attempt to use it as fundraising dates back to sponsoring the Jamaican Bobsled team to help them compete at Sochi Winter Olympics. In 2014, this meme coin community made a $50,000 donation for a water project in Kenya, and this initiative helped them build a great fan base.
Publicity by Elon Musk
One of the driving forces behind DOGE’s rising popularity and broader acceptability in the crypto market is Elon Musk’s name attached to it. Since 2019, top celebrities regularly tweeted about this coin, which served as a reason for its price hike. A series of tweets by Elon Musk led to speculations that the celebrity entrepreneur is working towards the coin’s development, and he’s even the new oner of DOGE.
Encouragement from the Tiktok community
2020 proved remarkable for the meme coin because a trend emerged on TikTok. A DOGE TikTok community began contributing to the rise in the currency’s price by inviting people to invest at least $25 to help the price rise. This trend enabled DOGE to experience a hike of 20% within an hour.
Dogecoin is predicted to rise in value in the future; however, an essential point in this context is the coin’s lack of real-world use cases. Its development will surely attach more value to the coin and, hopefully, curb instability.