In every market slaughter, there are some winners. Those with sell orders over 50 satoshi on Dogecoin may have noticed their sales went through recently.
Demand for Dogecoin has seemingly picked up whilst the rest of the market was on a sell frenzy. The Dogecoin price went up about 6 Satoshi in the last 48 hours, with more than $11 million in total trade volume, a gain of more than 10%.
Dogecoin is an oft-forgotten coin, although it is accepted by several major providers and is traded on every respectable altcoin exchange. The coin was born of the meme culture of the early 2010s and its only primary differences to Bitcoin are that it is inflationary in nature – it will never stop producing new tokens – and it uses Scrypt, the same hashing algorithm as Litecoin.
In the early days of its community, Dogecoin achieved some interesting marketing feats, including sponsoring a professional race car driver and a lunar rover.
The explanation for the increase in price may not be demand, exactly. It may rather be a correction on the part of sellers who are trying for a USD figure – as the price of Bitcoin goes down, necessarily the amount of satoshi a given altcoin is valued at must go up for the price to remain “stable.”
Still, the market downtown as a result of Big Bitcoin’s tanking illustrate how the majority of cryptocurrencies still rely on Bitcoin for liquidity and valuations. There is a possibility that in the coming years, Stablecoins will become the new metric by which most altcoins are judged, fulfilling the prophecy of full-scale divorce of cryptos from the necessary Bitcoin pricing. If or when this happens, the actual value of tokens will be more clearly expressed. Currently most or, really, all calculations are relational to the Bitcoin/fiat markets, and as such it’s hard for something like Dogecoin, which finds its best use case in tipping and microtransactions, to truly find their value.
In some cases, Dogecoin or Litecoin are the best way to make withdrawals from exchanges which have high fixed fees for Bitcoin.
Whatever the case, the price of Dogecoin will always have to answer to its mammoth supply. A fast-moving, always-on public blockchain could see some use in the tokenization of all the things, but no one to our knowledge has pursued anything like that yet.
Featured image from Shutterstock.
Last modified: June 11, 2020 7:44 PM UTC