Dogecoin (DOGE) is one of the top 12 cryptocurrencies! The coin was originally developed as an affordable alternative to Bitcoin, focusing on speed and cheap transaction fees. However, it has created a strong community of followers, which is attributed to the famous Shiba Inu meme, which serves as its mascot.
Dogecoin History
In 2013, two software developers named Billy Marcus and Jackson Palmer came up with a joke, and they were the ones who originally came up with it! They came up with a new cryptocurrency by combining two of the most popular phenomena of that year: Bitcoin and the “doge” meme featuring a Shiba Inu. Since Marcus and Jackson wanted to create a coin that was open to the public, they built it using open source software, making their source code available to anyone.
From these humble beginnings, the coin has quickly grown into one of the most well-known cryptocurrencies in the world! One of Dogecoin’s most notable advocates is Elon Musk, who wrote tweets that caused the cryptocurrency’s price to surge in early 2021.
Dogecoin is used as payment for certain branded goods! As a result the coin went from being a “joke” to a prominent player in the cryptocurrency market. One challenge facing Dogecoin is that it needs mainstream adoption. While it has gained some acceptance as a payment method, it still needs to catch up with more established cryptocurrencies like Bitcoin and Ethereum!
DOGE price history
2013–2020
Billions of Dogecoins are moved every day, and the value of Dogecoin increased by about 300% in just 72 hours, from $0.00026 to $0.00095. This happened on December 19, 2013. This expansion occurred as Bitcoin and many other cryptocurrencies were thrown into chaos due to China's decision to ban Chinese banks from investing in the crypto economy. Three days later, Dogecoin saw its first major crash, when its price plummeted by 80%. Due to this situation, large mining pools took advantage of the limited computing power required to mine Dogecoin.
Dogecoin's trading volume briefly surpassed all other cryptocurrencies in January 2014. However, its market capitalization remains far below that of Bitcoin. The initial version of Dogecoin included a randomly selected reward for each mined block.
Dogecoin reached a temporary peak of $0.017 on January 7, 2018, during the cryptocurrency bubble that occurred between 2017 and early 2018. This brought the total market capitalization of Dogecoin to nearly $2 billion. The price of Dogecoin surged in July 2020 as TikTok started a craze aimed at taking Dogecoin to $1.
2021–2024
In January 2021, Dogecoin surged nearly 800% in just 24 hours, reaching $0.07 due to the attention it received from Reddit users. Elon Musk and the GameStop short squeeze were also largely responsible for this growth. After receiving encouragement from Elon Musk, Snoop Dogg, and Gene Simmons on Twitter, the price of Dogecoin reached a new high of $0.08 the next month, in February 2021.
In March 2021, Dallas Mavericks owner Mark Cuban announced that his National Basketball Association team would use Dogecoin to purchase tickets and merchandise. Within two days, Cuban said his franchise had become the most successful Dogecoin merchant, having completed 20,000 transactions.
Cryptocurrency exchange Coinbase launched a direct listing on April 14, 2021, causing the value of Dogecoin and other cryptocurrencies to surge in April 2021. However, unlike other platforms, Coinbase does not offer Dogecoin trading. Dogecoin first hit $0.10 on April 14, then hit a new high of $0.45 on April 16, up 400% from the previous week. The trading volume in the past twenty-four hours was about $70 billion.
At the time, Dogecoin’s market capitalization was close to $50 billion, which made it the fifth-most valuable cryptocurrency. Its value has climbed more than 7,000% since the beginning of the year. Interest in Dogecoin led to an outage on the cryptocurrency system of electronic trading platform Robinhood on April 15. The outage was caused by “unprecedented demand,” prompting experts to express their concerns that a speculative bubble could be forming in the cryptocurrency market.
On May 9, 2021, SpaceX announced that this will be the first space voyage funded by cryptocurrency. The mission will be a rideshare trip to the moon, fully paid for with Dogecoin. Elon Musk confirmed the news via his Twitter account.
A CubeSat called DOGE-1 was supposed to be the tiny 40-kilogram rideshare payload on Intuitive Machines' IM-1 mission, which was to launch in the first quarter of 2022. Despite this, it has been delayed until a possible later flight.
The Dogecoin Foundation released a statement on August 14, 2021, saying that it had “reestablished the Dogecoin Foundation (2014) to refocus on supporting the Dogecoin ecosystem and community and promoting the future of the Dogecoin blockchain. Ethereum co-founder and inventor Vitalik Buterin and Jared Birchall, who represents Elon Musk, are among the notable advisors added to the Foundation’s board of directors, enabling the Foundation to undergo a revitalization.
Reasons for the rise of Dogecoin
1. Elon Musk tweets
Elon Musk, CEO of Tesla and SpaceX, has a significant impact on the value of Dogecoin through his tweets. His mentions and endorsements of this cryptocurrency often create a wave of attention, which often increases the price of Dogecoin.
2. Celebrity endorsements
Thanks to more Twitter endorsements from Snoop Dogg and Gene Simmons, the price of Dogecoin reached a new high of $0.08 in February 2021. This demonstrates the power of social media in influencing price adjustments.
An important factor that boosted the scope of Dogecoin usage was Mark Cuban’s announcement that the Dallas Mavericks would accept Dogecoin for ticket and merchandise purchases. Due to this approach, the company completed 20,000 transactions in just two days, making it the top of the list of Dogecoin merchant transactions.
3. Dogecoin is accepted as a payment method
Another feature that influences the value of a cryptocurrency is its ability to be used for payments. While most cryptocurrencies are used primarily for speculative purposes, Dogecoin has established itself as a viable means of exchange.
More and more online stores and businesses have begun accepting Dogecoin as a payment option, increasing the usability of the cryptocurrency and, therefore, its value.
Future Challenges for Dogecoin
The dog-themed meme currency made a U-turn from the $0.10 mark after a successful end to 2023. Moreover, despite the ongoing downturn in the cross-border markets, the price of Dogecoin continues to show a moderate bullish attitude.
The weekly trend turned bearish in July 2024 despite a huge bullish candle earlier this year. Lower price rejections strengthen the bull thesis, reflecting the huge demand for the memecoin at lower levels. With caution, DOGE’s price could reach $0.3751. On the other hand, a wave of supply could test the psychological support level of $0.10.
If the fear of missing out (FOMO) in cryptocurrencies continues to increase and influencers continue to promote the coin, the price of Dogecoin could reach $1.07. On the other hand, if Dogecoin fails to maintain its current growth rate, its price could average $0.845 in a competitive market.
Conclusion Analysis
Dogecoin is the king of meme coins, with an unrivaled market cap and fan following. It has been the reason people have made millions since reaching its all-time high in 2021. Dogecoin’s transformation is an incredible story of how a joke became a multi-billion dollar asset. With influential backers like Elon Musk and a dedicated community, Dogecoin has cemented itself as one of the most popular cryptocurrencies.
