Many of his tweets on DOGE led to or coincided with major rallies in price, although he has also addressed the risks involved with the currency on several occasions. Derided by critics as nothing https://currency-trading.org/currency-pairs/hkd-jpy/ more than a joke or a meme, that is exactly what Dogecoin began as. Bitcoin (BTC) price has shown resilience in December, resisting selling pressure coming from a weekly supply barrier.

  • Dogecoin increased by a 540% in value on a
    year-to-date basis, and a 1070% gain from its all-time highs in mid-February
    2021.
  • Like Bitcoin and many other cryptocurrencies, Dogecoin uses the proof-of-work method and a process called mining to validate transactions.
  • If digital assets
    continue to show more demand from traders, Dogecoin will surely be amongst the
    top gainers due to its popularity and value.
  • Our currency rankings show that the most popular Dogecoin exchange rate is the DOGE to USD rate.

The Dogecoin Foundation is currently in charge of supporting the Dogecoin Ecosystem and overseeing the community. It was originally founded in 2014 but dissolved over time due to inactivity. In response, Elon Musk voiced strong agreement for the idea that DOGE could be used as a currency and noted that its tipping utility would be nice to have. However, the billionaire https://cryptonews.wiki/25-lucrative-forex-affiliate-programs-you-need-to/ seemed to show no support for Markus’ Web3-based proposal, and not much development work on it has been seen. Along with the humor inherent to its concept, the creators of DOGE also intended to advertise the benefits of cryptocurrency. They did this by staying light-hearted and unconventional, while also making sure it actually worked as a form of digital cash.

The DOGE On-Balance Volume (OBV) shows a clear upward trend, indicating that the volume is supporting the price trend. Despite Dogecoin’s popularity and big gains, investors should consider it one of the worst cryptocurrencies to buy for 2022 and beyond. Lastly, I’d add that it’s a lot tougher to short-sell lesser-known cryptocurrencies than it is to bet against Bitcoin or publicly traded stocks that have derivative trading options.

Is Dogecoin worth the hype?

FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Investors can take a leap of faith and accumulate DOGE as it retests the aforementioned demand zone. The resulting bounces could be the key to triggering a massive rally for Dogecoin price.

  • Both had envisioned Dogecoin as a fun cryptocurrency that would have greater appeal beyond the core Bitcoin audience.
  • Many of his tweets on DOGE led to or coincided with major rallies in price, although he has also addressed the risks involved with the currency on several occasions.
  • This is in stark contrast to Bitcoin, where only one wallet holds over 1% of the currency and the top 10 holders have only 5.5% of the circulating supply between them.
  • An investment into Dogecoin is seen by some as a bet on its potential to grow into a real cash alternative.
  • In response, Elon Musk voiced strong agreement for the idea that DOGE could be used as a currency and noted that its tipping utility would be nice to have.
  • If miners start to abandon a coin and show no
    significant demand, a loss in value will be inevitable; however, this is not
    the case with Dogecoin.

These blocks are batches of transactions and are recorded on the blockchain every minute. All of this makes it very difficult for Shiba Inu to regain its traction with meme coin investors. Arguably, the hottest meme coin of 2023 hasn’t been Shiba Inu at all — it’s been Bonk, which is up a staggering 10,000% this year. But perhaps the most worrisome aspect of owning Dogecoin is what history tells us happens after quick, life-altering gains. Dogecoin is already down 77% from its May peak, and history suggests it has a ways to go before it has any chance of finding a bottom.

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Like Bitcoin and many other cryptocurrencies, Dogecoin uses the proof-of-work method and a process called mining to validate transactions. Dogecoin miners use devices, such as computers with high computing power, to solve mathematical equations that verify and record transactions on Dogecoin’s blockchain. In return for verifying Dogecoin transactions, miners receive payment in Dogecoin. Dogecoin has its own blockchain and a mining system similar to Litecoin’s.

With few channels to place downside bets on Dogecoin until recently, there was a natural buy bias in place that pushed its token price significantly higher. Pretty much any cryptocurrency that’s utilized the Shiba Inu dog breed as its inspiration or the face of its campaign performed exceptionally well in 2021. At one point, Dogecoin had gained approximately 27,000% in just a six-month stretch between early November 2020 and early May 2021. A peer-to-peer purchase or transfer of DOGE from one wallet to the other, however, will highlight Dogecoin’s speed.

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This is despite regulatory FUD, when the US Securities and Exchange Commission labeled SOL a security during its market-wide clampdown against cryptocurrency exchanges. Regardless of the optimism around the underperforming dog-themed crypto, if Bitcoin heads south, so will most other altcoins, including DOGE. If Dogecoin price produces a weekly candlestick close below $0.078, the bullish thesis will face invalidation and such a close could potentially catalyze a crash to $0.048. Dogecoin price nosedived nearly 85% from its all-time high at $0.740 and set a bottom at $0.109 in roughly less than a year. This slump comes as the entire crypto market has suffered a slow downtrend. Unlike many altcoins, however, DOGE has not managed to recover its losses.

Buy DOGE

While very similar to fiat money in this regard, DOGE cannot serve as a store of value considering this lack of scarcity. For example, Polkadot is staked to secure the ecosystem, whereas Ethereum is burned to confirm transactions. Dogecoin, however, is yet to truly find a real use case, although its adoption as a medium of exchange is growing. In the years following its launch, Dogecoin was used mainly as a currency with which users of social media sites could tip each other. Nonetheless, some have also used the token as a medium for the exchange of real goods and services. Starting right from its launch, Dogecoin has branded itself as a fun, laid-back, community-oriented cryptocurrency that aims to do good in the world.

With crypto investors watching Bitcoin catapult more than 8,000,000,000% at one point in a little over 11 years, they’re of the belief that anything is possible. They’re especially attracted to the psychological target of DOGE reaching $1. To build on the previous point, Musk has also tweeted that he’d be working with Dogecoin’s developers to improve the blockchain-based network and make it more competitive. The most clear and obvious catalyst for Dogecoin is the support of Tesla Motors’ (TSLA -3.92%) CEO Elon Musk.

Dogecoin to US Dollar stats

One week from today, we’ll turn the page on what’ll certainly be another successful year for investors. The broad-based S&P 500 was higher by a cool 22% through Dec. 20, which effectively doubles up its average annual total return, including dividends, over the past four decades. It doesn’t derive value from another asset, as stablecoins do, or add value to any financial system, such as Ethereum (ETH 2.44%). Dogecoin’s biggest asset, aside from its entertainment value, is its community. The technological roots of Dogecoin can be traced back to the first cryptocurrency, Bitcoin (BTC 2.64%). Like an evolutionary fork, the Dogecoin developers copied Luckycoin’s source code and modified it to create Dogecoin.

The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. It was designed to
work as a medium of exchange whereby people make instant and free transactions,
unlike transactions in the traditional banking system. Dogecoin’s creators
claim https://bitcoin-mining.biz/learn-to-trade-reviews/ to have started this whole project for fun and with no clear objectives. The symbol of the coin originated from the face of the Shiba Inu dog, initially
derived from a dog meme. After developing a huge online community, its market
capitalization reached $5,382,875,000 in 2021. In 2015, both Palmer and Markus left Dogecoin, and a team of four part-time developers took over.