Since the concept of digital currency came into being, new currencies have made their way to the bunch. Renowned cryptocurrencies, like Bitcoin and Ethereum, have made their mark in the crypto market. Their high-profit potential has attracted tons of new traders and investors in the field. However, new cryptocurrencies have also gained popularity in the last couple of years. One such crypto goes by the name of Dogecoin. It is a cryptocurrency similar to Bitcoin or any other in its features and attributes. Dogecoin came into existence in 2013. Its creation is somewhat peculiar as it was created as a part of a joke, or one may say a meme, but it recently stormed into headlines when Elon Musk tweeted “SpaceX is going to put a literal Dogecoin on the literal moon’’.
Over the past few years, we have witnessed a surge in the activity of Dogecoin. As it is attracting some popular public figures, it has become the talk of the town nowadays. Its market has touched high levels of activity and it has managed to accelerate at 450%, which is huge considering its newness to the market. Dogecoin’s market cap has reached $50.5 billion. Today, we can say it is the fifth-largest cryptocurrency in the world, at least theoretically. Previously, Dogecoin was not that popular or valuable, but 2021 has been an exceptional year for the currency. Behind this hype are an army of Dogecoin holders and supporters. The campaign behind Dogecoin has proven to be immensely effective in driving its value upwards.
As we all know Dogecoin is now in the direct limelight since the tweet of Elon Musk about launching a Dogecoin on the moon.
SpaceX is going to put a literal Dogecoin on the literal moon— Elon Musk (@elonmusk) April 1, 2021
Crypto traders and investors immediately shifted their interests towards this coin. In just half an hour after the publication of this message, Dogecoin quotes rose by 20%. Nobody knows if it is another joke or meme but something that is confirmed is that Elon Musk is interested in Dogecoin. This reason is enough for its value to increase heavily. He also once tweeted about how Dogecoin is his favorite cryptocurrency, and that has surely encouraged the masses to develop an interest in it.
Many investors other than Elon Musk including Mark Cuban and California-based popular rapper Snoop Dogg have supported the currency. Not only that Latvian airline, airBaltic has added Dogecoin as a payment method. This has made buying tickets and other services extremely convenient for many people across the world. It took years for the likes of Bitcoin to be considered as a payment gateway but the immediate success of Dogecoin shows how it has progressed in the last few months. Furthermore, Mavs Fans for Life (MFFLs) can now use Dogecoin to buy tickets and merchandise online, making Mavs merchandise more accessible to MFFLs everywhere on the planet. On April 19, Newegg, which is one of the leading tech e-retailers, opened its gates for Dogecoin. They celebrated the announcement day through the use of a hashtag, #dogeday.
Where everyone is coming in terms with crypto, there are some organizations such as the Central bank of Turkey who are not finding the right means to make direct or indirect use of the crypto payments. That is why The Central Bank of the Republic of Turkey has banned the use of cryptocurrencies for payments. The authorities further explained that the payment service providers could not develop efficient business models to profit the bank with the volatility of the digital currency. These developments usually halt the progress of the likes of Dogecoin in that particular region.
Talk of Dogecoin on social media platforms such as Twitter, Reddit, and Facebook is very common. People discuss and make memes or puns to enjoy the developments in the crypto market. It is where many experts and analysts share their opinions about the recent trends or their possible behaviors in the future. In the light of recent events, many people shared their thoughts about Dogecoin as well, and have shown interest in its market.
After digging deeper into many analyses we can say a cryptocurrency that came into existence as a joke has exploded and invaded the cryptocurrency market. However, we cannot necessarily link all this success of Dogecoin to merely a tweet. Moreover, there is a more acceptable explanation for this success. It is that organized efforts in online communities can make a surprisingly large impact on market prices. This also indicates that the market will remain high for quite a period now.
According to many analysts, like any other cryptocurrency, investing in Dogecoin also carries major risks and threats of loss because of its highly volatile nature. Dogecoin became highly popular in 2021, but there is still ambiguity and a lot of fuss about its long term sustainability. To simplify the analysis, experts regard it as “many people will lose a lot of money and we know that”
According to the experts, Dogecoin sure can do crazy things but at the end of the day, it is a non-reliable asset. Therefore, any investor or trader needs to be very careful before putting their money in it. One similar tweet surfaced by the Altcoin Sherpa criticizing this temporary high trend in Dogecoin’s value graph.
$DOGE: I personally am not going to short this at this time; crazy coin that can do a lot of crazy shit. It's eventually going to be an epic short situation but I'll try to wait until a bit of confirmation before stepping in front of a speeding train. #DOGE #DOGECOIN pic.twitter.com/rlwJbdrjw6— Altcoin Sherpa (@AltcoinSherpa) April 19, 2021
The Messari Analyst, Ryan Watkins indicates Dogecoin to be among the topmost interacted cryptocurrency of 2021.
$DOGE is really going to $1 isn’t it?— Ryan Watkins (@RyanWatkins_) April 19, 2021
Alex Kruger said that he did not even believe that Dogecoin would be able to reach 1$ in this cycle.
I didn't believe $DOGE would reach $1 this cycle.— Alex Krüger (@krugermacro) April 19, 2021
Now I do.
Big lesson in there.
But the sudden market movements and the current situation led him to now believe that anything can happen in the unpredictable crypto market. Many people did not believe that Dogecoin would be able to achieve this fame and success but it has defied all odds and has made a great statement in the market.
There are different analyses about the Dogecoin currency. Some believe it gained popularity gradually to reach such high levels in 2021 and is, therefore, more trusted by traders. Whereas, others believe that it was not so popular before and has suddenly reached peaks in 2021 which is nothing but a fluke or a bubble. Whatever the case may be, Dogecoin is volatile and risky. Therefore, it is recommended to make use of the right platforms for trading or investing in it, to make more profits. There is no doubt that Dogecoin had been able to build a great reputation for itself in the previous year. It looked like a tipping currency but it has maintained that reputation till now which is a success.
What are your thoughts on Dogecoin's future? Let us know in the comments below.