Dogecoin isn't a new product on the crypto market. It exists there for quite a while and is one of the best-known cryptocurrencies due to its memetic idea, long time of presence on the market, and very efficient promotion in social media. Let's follow it throughout its entire lifespan, from the beginning until today; it may help us understand what is the hype all about and what will happen next.
Back in 2013, when cryptocurrencies weren't as popular as today, two programmers, Bill Marcus and Jackson Palmer, decided to create a one as a joke. As a mascot for it, they chose the Doge meme, a cute shiba inu face that was very popular among Reddit users in those days. Its face could be used in different conversations and could stand both for sarcastic and confused or for more positive and tender expressions. Regardless of its initially humorous idea, Dogecoin was a full-fledged altcoin based on the Litecoin blockchain. Its creators planned to limit its emission but later dismissed this decision and decided to make Dogecoin's supply unlimited.
The meme went viral, and so did the related crypto that grew almost tenfold throughout one month. However, the excitement about this new funny coin went down soon so its price decreased as fast as it went up earlier. Dogecoin went through three years of minimum. This lasted until users appreciated its advantages. They liked the convenience of the coin for transactions between crypto platforms which was fast, almost instant, and the fee it took for this was very low. What's not to love?
In 2017, the coin surged again; this time its growth wasn't as extreme as before. It took Dogecoin a year to reach its all-time high. Then it started degrading again, slowly but substantially. As a result, in 4 years Dogecoin added 7076% in value and lost 80% of it over time.
As this cryptocurrency meant to be created as a joke, on 1st April, 2019 the coins team decided that it will be a good idea to choose Elon Musk as a new Dogecoin's CEO in their Twitter. Musk, well-known for its specific sense of humour, joined this game. He joked in the comments and even posted a few tweets about Dogecoin. Musk called it his favourite cryptocurrency and the name stuck to the coin. Even now some call it like this in the news. This joke escalated the audience's interest which led to the growth of the coin's value.
New times require new marketing solutions, so in July of 2020 Dogecoin was featured in TikTok. A short video of the user who urged people to buy Dogecoin went viral and got an enormous amount of likes and comments. The hype pushed the coin 140% up in three days. This growth seemed to be a good reason for users to purchase the coin, and the Dogecoin-challenge started. The users urged everyone to buy and hold Dogecoin until it reaches 1$. The crypto exchanges also wanted to be trendy, so they started adding more options for trading Dogecoin. What Dogecoin Is Capable Of?
Now Dogecoin skyrocketed again, furiously as it always did. Mia Khalifa, a former porn star, wrote in her Twitter that she bought some Dogecoins, and this fueled the rage even more. The market is obsessed, and the hype is insane. Will it last long? BTC-Alpha team doesn't think so.
As the coin's history shows this coin is likely to skyrocket and crash to extremes, the chances for this hype to pop as a bubble are quite high. However, the pumping technologies of Dogecoin can be adopted by the other cryptocurrencies, so we're likely to see more spikes of different altcoins in the future. Concerning this ambiguous coin, it's better to watch how things will go. If you want to believe in it, you can buy a little and hold, but please don't repeat the mistake of the unfortunate traders who traded Dogecoin with leverage.