Dogecoin: After all Elon's impact, should DOGE be bullish in the long term?
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Disclaimer: The datasets shared in the following article are compiled from a group of online resources and do not reflect FoxCryptoNews' own research on the subject.
DogeCoin a meme coin
Dogecoin and other meme currencies are inspired by memes and jokes. The image of Shiba Inu circulating online inspired the Doge meme, which led to the creation of Dogecoin.
Memecoins are not taken seriously, but when other members of the community buy them to join the joke, their popularity will increase. Even among the unknown, Dogecoin is now known as much as Bitcoin.
Individual investors will sometimes join in after a coin's value increases and spikes, helping the cryptocurrency become more and more popular. Famous people and personalities online help increase the appeal of different meme coins.
Since its launch around 2010, the crypto industry has come a long way. The cryptocurrency industry's vision is for an on-chain financial order that does not invite government intervention. Needless to say, such a grandiose plan aroused suspicion and even brought smiles.
Billy Markus and Jackson Palmer, a couple of software engineers, have been watching this trend and think the whole cryptocurrency thing is being taken too seriously. In response, they created a memecoin called Dogecoin in December 2013 to mock crypto maximalists. The memecoin quickly became popular around the world, thanks to its spread on social networking sites like Reddit.
The token features an adorable Shiba Inu, a rare Japanese hunting dog. Dogecoin went viral on social media platforms like Reddit, instantly gaining popularity around the world.
Dogecoin quickly gained an enthusiastic following. Those who are interested in cryptocurrency but do not attach too much importance to its supposed revolutionary potential were the first to flock to this memecoin. People who like this Japanese breed also bought this memecoin. Anyone willing to casually get into crypto is also participating in the Dogecoin culture.
However, as it gained more traction in the market and its value increased, people started buying into this joke cryptocurrency in earnest. Today, it is the 10th largest cryptocurrency by market capitalization, and after the merger of Ethereum, it became the second largest Proof-of-Work (PoS) cryptocurrency after Bitcoin. In fact, the value and popularity of this memecoin have made it so popular that it has become the main sponsor of English football club Watford FC for the 2021-22 season, The Atlantic reports.
Thanks to the popularity of Dogecoin, a variety of meme-inspired cryptocurrencies have grown around the world, with Shiba Inu being the most popular among them. Over the years, more than 200 coin memes have been created since the launch of Dogecoin.
Within days of its launch, it increased in value from $0.0026 to $0.00095, a significant increase of around 300%. In doing so, it quickly became one of the top 10 cryptocurrencies on the market. From January to May 2021, DOGE has grown by more than 8,600%.
One of the reasons behind such an increase is that tech and entertainment giants like Elon Musk, Snoop Dogg and Mark Cuban mentioned it on social media. On May 8, 2021, it hit an ATH of $0.7376. At the time of writing, Dogecoin is trading at $0.1029 on the charts.
A longtime Dogecoin developer, Sporklin, Now Not Anymore, once commented,
“Dogecoin can be a joke and still work… While the branding is foreshadowing jokes and memes, everything underneath was solid from the start.”
The special thing about Dogecoin is that it is fascinated by business magnate Elon Musk. Musk even backed Dogecoin on Twitter and once called it a hustle on an SNL episode, causing its price to skyrocket both times.
However, when the cryptocurrency market crashed in May 2022 and many Dogecoin investors also lost money, an investor named Keith Johnson filed a $258 billion lawsuit against Elon Musk and other investors. his companies, SpaceX and Tesla, for allegedly running what he calls the “Dogecoin Cryptocurrency Pyramid Mechanism.” In early September, Reuters reported that the lawsuit now has seven investor plaintiffs. new investor and six new defendants.
So far, DOGE has been used to reward creative users on Reddit, Twitter, and other similar networks for good content. People may also know DOGE in online communities of the same name, where the coin is popular. Another new concept for our readers might be the existence of a Dogecoin faucet. Dogecoin Faucet is a website that gives you free Dogecoin to introduce you to the world of Dogecoin and become an active member of this coin meme community.
Dogecoin has also been used to raise funds for various reasons. In 2014, the community came together to donate $50,000 Dogecoin to build water wells in Kenya. That same year, a group of enthusiasts raised over $25,000 in dogecoins to facilitate the Jamaican snowmobile racing team's participation in the Winter Olympics in Sochi. Again in 2014, the community raised $55,000 Dogecoin to fund Nascar driver Josh Wise. "Can't thank the dogecoin community and Reddit enough for the support... To the moon!" Sage said.
The growth of Dogecoin over the years has not much to do with its infrastructure development but more to do with its strong mining community.
Recently, Billy Markus, the co-founder of Dogecoin, turned down a $14 million offer to promote Dogechain, the unofficial layer 2 solution for coin meme. Many believe this decision reflects Billy's loyalty to the Doge community. Decentralization is a central feature of this revolutionary financial system, and forging an alliance with another group is a possible violation if one group dominates the system. Keeping the memecoin community happy and independent is the foundation of the belief system that underpins the community's growth.
Today, Dogecoin is as mainstream as Bitcoin and is traded on all major crypto exchanges including Coinbase, Gemini, and Binance.
Many prominent members of the blockchain and fintech community are currently involved with Dogecoin. A fund was established in 2014 to support and run the project, but it was dissolved over time. It was revived in 2021 by members of the original core team along with new faces and new experienced mentors ready to develop Dogecoin over the next decade.
Its team of directors includes Dogecoin founder Billy Markus, core developer Max Keller, Ethereum founder Vitalik Buterin, and Jared Birchall representing Tesla founder Elon Musk. Markus handles the community and memes, Keller handles the technical aspects of the project, Buterin acts as a crypto advisor to the platform, and Birchall provides legal and financial advice.
We can see how a coin that started out as a joke has become to date where the most prominent members of the crypto community today lead, advise and monitor its development. its development.
Let's discover how this exciting cryptocurrency, which says "Just Do Good Every Day", will perform in the years to come.
DOGE Social domination
Dogecoin is the pioneer among all the active memecoins in the market. Only after the initial success of Dogecoin did other memecoins like Shiba Inu and Monacoin enter the market. In fact, at the time of publication, it is among the top 10 cryptocurrencies on the market.
Dogecoin remains incredibly popular with its core fan base and other crypto enthusiasts. Currently, their Twitter have 3.498 million followers and their Reddit has 2.3 million members respectively. One of the main reasons behind its growing value is the support of these online communities.
In January 2021, its price increased by 800% in just 24 hours when a subReddit called r/SatoshiStreetBets started to increase in price to make it the cryptocurrency equivalent of Gamestop. In early April 2021, it rallied 400% after popular crypto exchange Coinbase went public and Elon Musk tweeted about Dogecoin.
Before investing in Dogecoin, you should know about its past performance, market studies and predictions. It is for this reason that we provide a summary of the most reliable predictions for Dogecoin, in addition to the Fear & Greed index.
DOGE Market Cap and Price analysis
In the way that Dogecoin started out as a mockery of Bitcoin and other cryptocurrencies, its performance also mimics the performance of those coins. Adverse market conditions at the end of Q2 2022 have completely wiped out the crypto market and Dogecoin can't escape the worst part of it either.
In 2021, it remains one of the best-performing cryptocurrencies, peaking in May with an ATH of $0.7376 and a market cap of over $700 million. Then it quickly began to descend. 2022 is off to a pretty good start for the cryptocurrency with prices hovering around $0.17 in early January. But since then, it has lost more than 60% of its value.
In May 2017, its market capitalization passed $100 million and at the end of 2017 it passed $1 billion. During 2018-20, the market capitalization of Dogecoin did not cross the $1 billion mark. However, 2021 has arrived and just like its price, its market capitalization continues to grow. In April, it hit $52.65 billion, before hitting the $88.68 billion mark in early May. It ends 2021 with a market capitalization of over $22 billion.
The beginning of 2022 is also quite happy for Dogecoin, although not as good as the previous year. As of early April 2022, its market capitalization is $19.84 billion. Unfortunately, since May, it has dropped from about $17 billion to just over $8.7 billion at the time of writing.
What is special about Dogecoin is that it is a subject that fascinates business magnate Elon Musk. Musk even backed Dogecoin on Twitter and once called it a hustle on an SNL episode, causing its price to skyrocket both times.
He has also received the support of other celebrities such as Mark Cuban and Snoop Dogg. While the former's NBA team, the Dallas Mavericks, accepted Dogecoin as a payment currency, the latter team supported Musk in supporting the meme on Twitter.
Another difference between Dogecoin and other cryptocurrencies is that there is absolutely no limit to the number of Dogecoins that can be issued. Its website states that it "has a low inflation rate as it has a fixed annual issuance of 5 billion coins."
Dogecoin in the near future 2025 prediction
Investors should understand that different analysts consider different sets of parameters to forecast market indices. Therefore, different analyzes can be very different. We must also remember that unexpected macroeconomic effects, such as government regulations and war, cannot be foreseen. The market changes direction wildly during such changes. So there are no predictions set in stone.
Now, let's see how different analysts have predicted the future of Dogecoin in 2025.
Coin Journal is quite optimistic about the future of Dogecoin. Especially since it anticipates its wider utility as more and more merchants start accepting it as a form of payment, raising its price to $2.59.
In contrast, a Changelly blog post mentioned that DOGE's maximum and minimum prices in 2025 will be $0.28 and $0.23. He predicted DOGE's potential ROI of 452% that year. Furthermore, a report by Analytics Insight claims that with cryptocurrencies and applicable regulations set to improve, DOGE price could reach $0.77 by 2025.
As far as the Finder console goes, it predicts DOGE will cost $0.19 by the end of 2025. These predictions, in July 2022, are oddly lower than their own January predictions. . Backing them up, the panel predicts DOGE to hit $0.32.
Dogecoin for the long-term 2030 prediction
While predicting market indices 8 years from now is highly speculative, it is helpful to study reliable crypto analysts' predictions for Dogecoin in 2030.
Capex writes that the more we look into the future, the more difficult it becomes to predict the price of a cryptocurrency. It becomes especially challenging in a market as volatile as any cryptocurrency. Accordingly, experts predict that DOGE price may exceed $0.80 by 2030. During a bull market, its minimum price will not fall below $0.30.
The Finder panel has also shared some DOGE price predictions for 2030. Accordingly, the popular memecoin will reach a price of $0.64 on the charts in 2030.
Experts say influencer marketing and promotions will also drive up DOGE prices. It will also grow at a remarkable rate. Features like no sharing of rewards and a lack of new use cases will also affect the market.
Here, it is worth noting that perhaps Dogecoin does not follow the traditional rules of a conventional property since it is a memecoin. Just consider what Gavin Smith of Panxora Hedge Fund had to say:
“Token opponents forget that community is at least as important as uniqueness in the crypto space.”
There is also the issue of updates. Usually, people will associate new improvements and upgrades with an increase in the price of a cryptocurrency. However, is that the case for DOGE? Well, not quite. In fact, Musk is more useful as a catalyst. In fact, the Finder panel seems to agree with that suggestion.
Elon Musk recently introduced the Boring Company fragrance on Twitter and said that customers can buy it with Dogecoin. The announcement had an immediate impact as the DOGE price rose rapidly. It remains to be seen whether the decision is taken and if other companies do the same.
Last week, Google Cloud announced a partnership with Coinbase for Web 3.0 development projects. Selected customers will be able to pay for these services through cryptocurrencies, including Dogecoin. It remains to be seen whether the decision is taken and if other companies do the same.
"Bitcoin Jesus" Roger Ver once said that the memecoin is superior and better than the pioneer cryptocurrency: Bitcoin. Now, whether the above prediction comes true or not depends on many factors, some of which cannot be predicted in advance. However, for an altcoin that started out as a joke, Dogecoin has certainly come a long way.
Dogecoin is the first meme coin that has successfully connected the financial potential of cryptocurrency with the community of the meme culture, making it accessible to new crypto users. Moreover, celebrity endorsement also greatly increases his popularity. Today, it is considered one of the most valuable cryptocurrencies.
Recent reports suggest that the dramatic rise of memecoins has been seen as a trend in whale activity emerges. An analysis by market research firm IntoTheBlock suggests that most whales intend to keep the tokens rather than sell them.
Earlier this month, Google Cloud and Coinbase announced a partnership for Web 3.0 development projects. Some customers will be able to pay for these services with cryptocurrencies like Dogecoin. We will have to wait and see if the decision is made and if other companies follow suit.
However, the truth is uncertain. Especially since the Fear and Greed Index showed extreme greed at the time of publication.
Oct 29, 2022