Dogecoin (DOGE), once seen as the 'jester' in the market due to its joking origins, has now made a stunning turnaround. According to the latest data, as of November 27, 2024, Dogecoin's market capitalization has reached $57.8 billion, surpassing the luxury car brand Porsche's $56.1 billion. This comparison not only showcases the potential of the cryptocurrency market but also highlights the influence of community strength and external drivers.
The success of Dogecoin cannot be separated from Elon Musk's continuous support. The Tesla founder has repeatedly pushed the topic of DOGE on social media platforms, drawing widespread attention from the market. Recently, Musk has also established a deeper connection with Dogecoin—he participated in the creation of an organization called the 'Department of Government Efficiency' (DOGE), aimed at streamlining government operations. This not only increased the popularity of Dogecoin but also endowed it with a certain 'political mission'.
Additionally, Dogecoin has received a boost from financial innovation. Valour, a subsidiary of DeFi Technologies, announced on November 26 the launch of an exchange-traded product (ETP) based on DOGE. This news indicates that Dogecoin is moving from being viewed as a 'fun' digital asset towards traditional financial markets. Valour's Nordic head Johanna Belitz pointed out that the launch of the ETP is based on market demand and the influence of key figures like Musk.
The reason Dogecoin has been able to surpass Porsche is partly due to the divergence in market performance between the two:
Dogecoin: Market capitalization increased by 395% in 2024, thanks to Musk's support, the launch of ETPs, and growing community confidence in Dogecoin.
Porsche: Its market capitalization has fallen from $117 billion in 2023 to the current $56.1 billion, shrinking by over 56%. This reflects the challenges faced by the traditional automotive industry amid global economic slowdown and the electric vehicle revolution.
This comparison not only reflects the growth potential of crypto assets but also highlights the competitive pressure traditional assets face in the new era.
Technical chart analyst 'Trader Tardigrade' mentioned on social media platform X that Dogecoin is replicating its historical price trajectory along the Gaussian channel. This pattern has previously predicted Dogecoin's surges, with some traders forecasting a price increase of up to 1000%.
Although this prediction sounds quite imaginative, the underlying logic is based on the following points:
Institutional support: The launch of financial products like ETPs allows more investors to access DOGE.
Community activity: Dogecoin has an extremely large community support, with trading volume and attention continuously rising.
Technical signals strengthening: Historical trends indicate that Dogecoin experiences significant growth every time it enters similar technical patterns.
However, it should be noted that Dogecoin's price is highly volatile, and the possibility of such a surge is largely based on speculative expectations.
Dogecoin has evolved from a joke memecoin to a digital asset that stands shoulder to shoulder with traditional industry giants, showcasing the innovative potential in the cryptocurrency field. While the current increase in market capitalization and market enthusiasm is heavily influenced by external factors like Musk, whether Dogecoin can go further in the future depends on its ability to continue developing practical use and driving technological innovation.
In the short term, Dogecoin may continue to maintain an upward trend in 2024, but investors should also remain rational and be wary of potential price fluctuations.
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