An Inside Look at Dogecoin Over a Year | Dogecoin has been one of the most prominent crypto coins of 2021. Despite its volatility, the cryptocurrency’s value has increased by more than 6000% in the past year.
The unbelievable growth of the currency has attracted a good amount of attention, but some investors are still reconsidering their investment plans related to Dogecoin.
If you are also wondering whether or not it’s a brilliant idea to invest in Dogecoin, then this article is for you. Here we will take an inside look at the performance of Dogecoin over a year.
What is Dogecoin?
Dogecoin was launched in the year 2013 by two software engineers Billy Markus and Jackson Palmer. They created it as a sarcastic take on the wild speculation on cryptocurrencies at the time.
It all started when the co-founder of Dogecoin – Palmer, an excellent standalone software engineer, in 2013 tweeted – “investing in Dogecoin is definitely the next big thing.” Palmer was later joined by co-founder Billy Markus, who worked with IBM. Together they established Dogecoin.
Initially, this cryptocurrency started as a joke, having the Shiba Inu dog as its symbol. The photo became a popular internet meme called Doge. It depicts a dog surrounded by a funny font text and words such as “much wow.” Aside from its online attraction in the meme world, Dogecoin has some notable features, including its low price, unlimited offers, and script algorithm.
The growth of Dogecoin was unexpected, but it rose sharply to reach a market capitalization of more than $1 Billion in January 2018. It has an amazingly active and supportive community with participants known as ‘Shibes’ who work with many social causes and sponsors.
Today, the market cap of Dogecoin has crossed over $40 Billion.
The Elon Musk effect
The credit for the increase in the value of Dogecoin goes to many retail investors and one of America’s most successful entrepreneurs – Elon Musk. In May 2021, his rocket company SpaceX stated that it would launch the DOGE-1 Mission to the moon in the first quarter of 2021.
Despite being a joke, the idea expressed by Elon Musk about accepting Dogecoin for a satellite launch to the moon held great importance for the stakeholders and investors of this meme-based cryptocurrency.
Elon Musk tweets so often about Dogecoin that many people started believing that he was the founder of the cryptocurrency. On 24th October 2021, Elon Musk addressed Dogecoin as “people’s crypto” when he tweeted a photo of his puppy.
The entrepreneur once again caused the rise of the Shiba Inn vault as one of the largest cryptocurrencies by market value. A simple tweet by the CEO of Tesla and overnight, the currency experienced a 10% increase.
Elon Musk also explained the reason for calling Dogecoin “people’s crypto.” He stated in a recent tweet that many people he came across on the production lines of Tesla or while building rockets at SpaceX owned Dogecoin. These people had no expertise in the financial or crypto investment avenues, nor were they Silicon Valley technologists. This accessibility and approach of ordinary people towards Dogecoin is why Musk believes it to be people’s crypto.
Recently, the business tycoon confirmed that he has only invested in Bitcoin, Ethereum, and Dogecoin. The followers of Musk who look up to him for financial strategies and inspiration are now drawn towards Dogecoin.
Musk has been the most influential figure in the growth of Dogecoin and has contributed immensely to its popularity.
Is Dogecoin a risky investment?
According to Crypto Dispensers, the remarkable market growth of this cryptocurrency has managed to startle investors. Trading platforms like Coinbase, Kraken, Binance and other Coinbase alternatives have witnessed an increase in Dogecoin trading. But with the unexpected increase, there are also chances of a sudden fall in the value of Dogecoin.
One of Musk’s tweets caused the value to rise by 144.44% recently, and since the onset of 2021, the value has jumped 13955.42%.
Similar to all other cryptocurrencies in the market, Dogecoin comes with a considerable risk factor. This factor is higher in comparison to the other cryptocurrencies due to its high volatility and complexity.
Dogecoin did not come even close to the value of $1 per token for a long time and traded below 30 cents until early September 2021. China’s ban on cryptocurrency added to the concern revolving around Dogecoin.
Dogecoin can be a good investment, but one must know when to sell at high points and buy back when the price dips. Missing important events or not keeping up with trends can result in losses.
What are the Prospects of Dogecoin in 2022?
Dogecoin could be one of the few coins that can be used as an actual currency rather than just a speculative asset. The price of one Dogecoin is $0.30 at the time of writing, with a 24-hour trading volume of $7,016,203,482.
Traders could see a positive boost in Dogecoin’s price trend to USD in the coming weeks. The standard technical analysis and Dogecoin price forecast suggest that the cryptocurrency will rise over the long term.
The value of the Dogecoin asset can affect a new high at any time. According to current trends, the price of Dogecoin should move above $0.50 in 2022. Meanwhile, the doge community has its eyes set on the $1 goal and expects the coin to achieve the same by the end of 2021.
Creating a long-term price forecast involves many cryptocurrency market facets. Dogecoin could very well achieve some of these targets at an earlier or later time. All of the above estimates are subject to change, considering the volatility of the market.
Investing in cryptocurrency is a great way to diversify your investment portfolio, but adequate research is necessary to trade without risking much.
Dogecoin is built from a well-designed open-source code. Doge’s supporters say investing in it when it is going up can be very rewarding. Whether it remains a meme currency or not, Dogecoin is taking significant steps in the world of cryptocurrencies.
Much of the coin’s success depends on its popularity and acceptance. If the cryptocurrency can stay relevant and find more real-world use in years to come, it is likely to appreciate way beyond some people’s expectations.