No other cryptocurrency on the market has seen such a phenomenal development in this bull cycle as Dogecoin. Originally developed as a fun logo and parody, Bitcoin has become early DOGE / USD investors turned out to be unexpected unexpected.
The price has literally exploded, and at the time of release it is listed at an incredible 16,200 percent higher than the previous year’s level. The token could be purchased for 0.0025 cents a year ago, but DOGE / USD currently costs about $ 0.415. At its peak, the cryptocurrency was as high as nearly $ 75 cents in May.
But what does this mean for those who are interested in investing in the cryptography market? Is the DOGE price completely exceeded and is a strong exchange rate correction expected? Or can altcoin continue its incredible rally and possibly even exceed one dollar in 2021? Market assessment.
What separates the DOGE encryption currency?
Dogecoin was developed in 2013 by two IBM and Adobe programmers. However, they did not want to create serious competition for Bitcoin. Nor did they both have any real application in mind for the use of cryptocurrency.
Rather, Dogecoin was intended as a statement. A statement about what, from their point of view, is the insane price development of Bitcoin and the flood of new cryptocurrencies that come on the market every day.
The name Dogecoin returns to the Internet phenomenon Doge. The meme that spread rapidly on the Internet in 2013 is the Japanese dog breed Shiba and English text excerpts such as “such”, “many”, “well”, “so” and “wow”.
At the technological level, such as Bitcoin or Litecoin, Dogecoin uses a work-based consensus mechanism to create new blocks. However, one big difference is the number of brands produced and in circulation. In the case of Bitcoin, these are clearly limited to the 21 million tokens that Satoshi Nakamoto’s release and BTC / USD act as an investment solely because of its limited amount.
Dogecoin, on the other hand, takes a completely different approach. In the design of the encryption currency, the limit was set at 100 billion tokens. However, the developers corrected this limit in 2014 so that an unlimited number of IDs could be issued. However, Dogecoin’s inflation rate decreases over time because the same amount of tokens must be added each year.
How could Dogecoin gain its value so enormously?
The basic data cannot explain the rise of Dogecoin as currently the fifth largest encryption currency in terms of market value. An application that justifies a huge price increase cannot be identified. Even the developers themselves see it this way.
The experiment with Dogecoin was born in several stages. Shortly after its launch at the end of 2013, the price of the cryptocurrency rose to unexpected heights. With a market value of nearly $ 9 million, Dogecoin quickly became the ten most valuable cryptocurrencies by market value.
Just a year later, the market capitalization rose to over $ 60 million and Dogecoin rose to the top five cryptocurrency currencies in the world in 2014. The rapid growth was due in particular to the very large fan community surrounding the project from the start, which remains one of Dogecoin’s greatest strengths today.
For example, in 2014, the community raised about $ 30,000 at Dogecoin to support the Jamaican steering group as the Olympics began.
In the next few years, Dogecoin’s price development was relatively calm. DOGE / USD reached its second peak in the bull market in 2017/2018, when the price rose to just under $ 0.02.
I found this picture of me as a child pic.twitter.com/hUEKluRAdP
– Elon Musk (@elonmusk) June 2, 2021
But the meteoric rise did not begin until this year. One man is primarily responsible for this: Elon Musk. Through Twitter, Musk shows his followers in regular tweets that he is a big dogecoin fan. For example, he reported buying Dogecoin for his son and even raising rumors that Dogecoin could be a potential means of payment for Tesla after the Bitcoin payment method was unexpectedly discontinued soon after its introduction due to its energy balance.
With almost every tweet, Musk gives Dogecoin a new price boost. Meanwhile, other celebrities have jumped into the wagon and are also Dogecoin fans on Twitter.
The huge rise in value of Dogecoin has meant that well-known analysts are now also talking about cryptocurrency, although all experts should be aware that nothing has changed in Dogecoin’s basic data.
Cryptographic exchanges also promote the Dogecoin trade. Not announced until yesterday Coinbase platform The listing of Dogecoin on Coinbase Pro brought DOGE / USD an increase in value of more than 50% in one trading day.
How will the DOGE price develop in 2020/2021?
- At the lowest level of the Corona crisis in March 2020, the DOGE / USD exchange rate was low less than $ 0.0017.
- In June 2020, the interest rate rose to about $ 0.0055, which has more than tripled in 3 months.
- After a significant $ 0.003 correction, the DOGE / USD shifted sideways until mid-November 2020.
- In a sharp upward movement, the price was able to rise again to $ 0.55 by the end of the year
- Thanks to the general altcoin season and Elon’s Musk tweets in particular, the altcoin exploded to an all-time high of just under $ 0.75 over the next few months.
- a sharp correction brought the price back to $ 0.21 by May 19, 2021. Well less than a third of an all-time high
- since it was listed on Coinbase, the DOGE / USD has risen again to just under $ 0.45.
- The market value is nearly $ 55 billion. This raises DOGE / USD to fifth in the encryption rating.
What course is possible for DOGE in the future?
The price development of DOGE / USD shows that hardly any cryptocurrency has such growth rates, but hardly any Altcoin is as volatile as Dogecoin.
Traders can make a lot of money with DOGE / USD, but they can also quickly experience a total loss. Because the course is very unpredictable and technical analysis quickly reaches its limits. While one celebrity tweet can have such a huge impact on the price direction, investors should be very careful.
Therefore, many analysts continue to rate Dogecoin as speculative and a less serious investment.
Thus, market observers at Wallet Investor expect Dogecoin to no longer rise to its all-time high in the near future, but to rise again somewhat to the final correction by 2022.
The evaluation of Digitalcoinprice.com is more optimistic. They are confident that altcoin will rise above $ 1 by 2024 and even break the $ 2 mark in the long run.