Cryptocurrencies have never been as popular as they are now, with every man and his dog looking to get in on this frenzy. That reference to a dog was intentional, as other than Bitcoin, one of the most popular cryptocurrencies over the past few months has been Dogecoin. Dogecoin was initially started as a joke, an extension of the popular meme featuring a Shiba Inu dog. However, this token has now seen price rallies of such intensity and to such an extent that it is being seriously considered as an asset to invest in. Thus, Dogecoin’s journey from meme to an investment-worthy asset is extremely interesting to follow, and we will try to lay it out here.
Dogecoin was first created in 2013, by the software engineers Billy Markus and Jackson Palmer. It was always intended to be a joke, which is why the logo of the coin features the Shiba Inu from the ‘doge’ meme. It was never hugely successful, but has come into the spotlight over the last few weeks and months. The coin has gained more than 1200% since the beginning of 2021, with the catalyst for this being the WallStreetBets phenomenon. A group of traders on a popular Reddit group, WallStreetBets, intervened in the market to create a short squeeze on a stock, Gamestop, which sent its price soaring and caused huge losses to hedge funds and institutional investors who had shorted that stock. In this frenzy, many traders also looked towards the crypto markets to try and cause a similar effect in the crypto space, and Dogecoin was the token they chose. Thus, with viral posts on Reddit and other social media sites urging people to buy and hold Dogecoin, there was a huge increase in its value during the last few days of January 2021. This surge has made Dogecoin the ninth-largest cryptocurrency in the world by market capitalization, which is some feat for a token that was created as a joke.
One of the events that shows that Dogecoin is now a serious cryptocurrency is the fact that it is being considered for use across various industries and sectors. As an example, the online gambling space has looked to incorporate Dogecoin into its operations, along with other crypto tokens. Such online casinos allow players to place bets by using cryptocurrencies, and Dogecoin is one of those that are allowed. This is beneficial since Dogecoin transactions are extremely rapid, and the fees charged are quite low as well. Transactions are safe and reliable as well – all of which means that Dogecoin has become a realistic option for online gambling fans, which is again a far cry from what its inventors had probably thought back in 2013.
Celebrities have also jumped on this bandwagon using Twitter, which has also served as fuel for the price of Dogecoin to increase further. Rapper Snoop Dogg had posted an image to Twitter with the image of the ‘doge’ pasted over his own face, while the frontman of KISS, Gene Simmons sent out a tweet declaring himself the ‘God of Dogecoin’. However, perhaps the biggest impact was made by Elon Musk, creator of Tesla and SpaceX and the richest person on the planet. He tweeted that “Dogecoin is the people’s crypto” on 4th February, and this was followed by a 50% increase in the token’s price in just a few hours. Musk has long been a huge crypto advocate, and in fact, an announcement by his firm Tesla that it had bought $1.5 billion of Bitcoin, earlier this year, was the catalyst for a rally in the price of Bitcoin as well.
Dogecoin has gone from being a joke token to one of the most recognizable cryptocurrencies, and it will be fascinating to note its rise in the upcoming weeks and months.