It’s 2021, and the memes have become more powerful than ever. And the best way to understand their power is to look at the value locked into the cryptocurrencies such as Dogecoin which started as a joke. As mentioned in our Dogecoin’s journey so far, it was introduced back in 2013 with Shiba Inu dog as its logo.
What is Dogecoin’s price currently?
Since the beginning of this year, while Bitcoin and Ethereum have grown tremendously, Dogecoin beats them with its rapid rise to $0.7 — increasing by more than 13,000% within the 5 months of 2021!
That said, the price has certainly come down now and currently hovers around $0.45.
Why Dogeoin’s price has continued to explode?
It’s quite difficult to put any one reason for Dogecoin’s explosive growth. However, there’s no denying that the biggest factor has been Elon Musk and his tweets. The CEO of Tesla and Space X has continued to preach about Dogecoin to his ~54-million followers on Twitter. Most recently, he talked about the virtual currency as a hustle in his appearance on Saturday Night Live on May 8th.
But he isn’t the only one. There are other celebrities like Snoop Dogg and Gene Simmons (co-lead singer of the rock band Kiss) who have also boarded the Dogecoin. And thus, there followers have also gotten interested about Dogecoin.
Entrepreneurs like Mark Cuban also have shown their support for Dogecoin. As an owner of Dallas Mavericks, he also accepts Dogecoin, mentioning that he’ll never sell it.
The biggest hysteria however, is that we’re perhaps seeing the GameStop phenomenon playing out in the crypto world. If you recall, earlier this year, GameStop — a gaming retailer which has been seeing its stock price declining — saw a huge growth in its share price, all thanks to a group of people in the Reddit forum called WallStreetBets. The users believed that the market didn’t want to realize the potential of GameStop and hence they managed to take its price from $20 to $500 (currently it’s ~$190).
Is Dogecoin’s price growth sustainable?
Now that’s a difficult question to answer. And you shouldn’t take any of this as a piece of investment advice as it’s difficult to predict where the market will go when people get involved in an emotional manner. With things like Doge Day (held on April 20th), it’s evident that users believe that Dogecoin is much more than a meme coin. Many believe that it should touch the $1 price. While that might happen, the fact that Dogecoin’s value plunged 30% after Musk’s SNL appearance shows that it’s almost impossible to time the investment.
We’re also seeing many other joke currencies enjoying the growth by cashing in on the trend. The biggest is Shiba Inu Dog ($SHIB) which has seen its price rising to astronomical levels by almost 44,000% in the last 30 days. Others like Akita Inu ($AKITA) and Dogelon ($ELON) have also seen their prices reaching newer heights.
As mentioned above, it’s difficult to know which way the market will go. However, if you’re investing now just to make some quick profits, you may get your hands burned. That’s because, it’s evident that the $DOGE has already seen the maximum increase in price. It may increase slightly or might even reach $1 as many in the ecosystem want, but we don’t know what will happen post that.
In fact, many people are betting against Dogecoin as well. Digital Currency Group’s Barry Silbert has taken a short position against Dogecoin.
That said, it still is impressive to see Dogecoin being in the top 5 cryptocurrencies with its market cap of almost $60billion as it shows how far it has come.