The Dogecoin (DOGE) community was experiencing a significant double-digit increase in price as the meme coin, holding the top spot in market capitalization, commemorated its 10th anniversary.
In an unexpected twist, Dogecoin (DOGE) commemorated its 10th anniversary with a remarkable celebration, surpassing the coveted $0.01 mark and solidifying its rank as the ninth-largest cryptocurrency, boasting a market capitalization of $14.62 billion.
As the community commemorated this milestone, DOGE enthusiasts closely watched the charts, witnessing a nearly 10% surge in the token’s value. The real magic, however, lay in the steady growth over the past two months, culminating in an impressive 70% gain since mid-October.
Originally conceived as a joke on December 6, 2013, Dogecoin has evolved to become the emblematic figure of the meme coin genre. Despite its initial humorous origins, its popularity has steadily risen, securing its position as the 9th largest cryptocurrency by market capitalization.
Dogecoin was created by software engineers Billy Marcus and Jackson Palmer. The cryptocurrency’s logo, featuring the misspelled word “doge” to describe a Shiba Inu dog, was branded by Palmer, drawing inspiration from a popular meme at the time.
Pat White, CEO of Bitwave, noted that “Doge was really started to poke fun at Bitcoin.” During its initial stages, a community of enthusiasts organized various publicity stunts to boost Dogecoin’s visibility. Examples include raising funds to send the Jamaican Bobsleigh team to the 2014 Olympics and sponsoring a NASCAR driver.
In early 2021, Dogecoin achieved cult status on Reddit’s WallStreetBets message board, known for its involvement in the GameStop affair in January. Enthusiasts on the subreddit had pledged to drive Dogecoin’s value “to the moon” before cryptocurrency discussions were banned on the platform.
In May 2021, Dogecoin experienced a significant surge, reaching a peak of $0.68, a remarkable increase from its value of just under one penny at the start of the year. The substantial growth was attributed, in part, to Tesla CEO Elon Musk, who played a role by expressing Dogecoin as his favorite cryptocurrency. By mid-2021, Dogecoin consistently ranked among the top five cryptocurrencies by total market capitalization.
Subsequently, the value of Dogecoin experienced a notable decline, reaching a low point of around $0.05 in June 2022. However, after Elon Musk adopted the Dogecoin Shiba Inu as the new logo for Twitter , DOGE quickly regained momentum, returning to the top ten cryptocurrencies by market capitalization.
Dogecoin, the cryptocurrency featuring the iconic Shiba Inu dog, operates on a dedicated blockchain similar to other major coins. This digital ledger keeps a record of all transactions, secured by robust cryptography.
Dogecoin employs a “proof of work” consensus mechanism, where miners dedicate computing power to solve complex mathematical puzzles. These puzzles validate transactions and add them to the blockchain, rewarding successful miners with newly minted Dogecoins.
While Dogecoin can facilitate payments and purchases, its lack of a fixed supply limit renders it a less-than-ideal store of value. Unlike Bitcoin, which has a finite issuance schedule, Dogecoin’s mining rewards millions of new coins daily, contributing to its inflationary nature .
This continuous influx of new Dogecoins presents a significant obstacle to sustained price growth, making long-term speculative investments less attractive.
In essence, Dogecoin’s technology is similar to many established cryptocurrencies, but its inflationary design and meme-based origin distinguish it from the pack.
While both Dogecoin and Bitcoin operate on blockchain technology, they differ in fundamental ways. Here’s a breakdown of their key differences:
Due to the absence of a lifetime cap on the total supply of Dogecoins and the continuous release of millions of new Dogecoins daily, there is minimal encouragement to hold the cryptocurrency for extended periods. In contrast, Bitcoin’s increasing value is attributed to its capped supply.
Historically, the individual coin value of Dogecoin has remained quite low, hovering around $0.003 per coin for a significant part of 2020, making it more likely for people to distribute them. Users on various social platforms, including Reddit, Twitter, Facebook, and others, can utilize Dogecoin to reward or ‘tipping’ each other for content contributions.
Purchasing any cryptocurrency carries inherent risks, and Dogecoin is no exception. While it may be prudent to acquire a few coins to acquaint yourself with the system, it is advisable to exercise caution and avoid investing a significant amount of your hard-earned money in a cryptocurrency that originated as a joke.