Dogecoin has made a name out of itself. It rose to prominence quite recently and now is one of the most popular coins in the market. But, the question is how and why Dogecoin is so popular? In this article, we will discuss how and why it became so famous.
What is Dogecoin?
While the famous Dogecoin needs no introduction, we will still talk about the background and history of Dogecoin.
Dogecoin initially started as a joke by Billy Markus (“Shibetoshi Nakamoto”) and Jackson Palmer. They made the payment system to poke fun at the speculations about Cryptocurrencies at that time. Despite its satirical background, Dogecoin is the favourite choice of many investors. Even Elon Musk has shown a keen interest in that coin tweeting about it on 4 Feb 2021.
Dogecoin has the iconic dog “Doge” a Shiba Inu as its logo and the namesake who’s really popular in the meme community. The dog in the logo is named Kabosu and is 16 years old as of 2021.
Why Dogecoin is so popular?
Dogecoin had a humble start in 2013. It was initially seen as a satirical take on Bitcoin. However, at the start of 2021 in March, Dogecoin saw a surge in popularity. It was due to the famous GameStop Short Squeeze event after which Dogecoin’s value skyrocketed. Following tweets from Elon Musk, Gene Simmons, and Snoop Dogg, it attained a new peak value, at $0.08 in the February of 2021.
Also, Mark Cuban declared that his NBA team will accept Dogecoins for entry passes and merch purchases. Within 2 days, Cuban revealed that his team is the top Dogecoin merchant, with over 20,000 transactions.
The value of Dogecoin for the first time overcame the symbolic ceiling of $0.50 on the 4th of May 2021, a phenomenal 20,000 per cent rise in a year.
However, despite or possibly because of, predictions of a boom in interest in Dogecoin as a result of Elon Musk’s presence on SNL, Dogecoin plunged 34% from $0.711 at the beginning of the show to $0.470 45 minutes later on the 8th of May, 2021. The following day, Dogecoin had dropped to a remarkable bottom of $0.401, a 43.6 per cent collapse and a $35 billion decline in value.
Dogecoin and DeFi
DeFi speculated to be the next big thing in the Crypto world and billed as ‘The Bank Killer’ are getting all the fame these days. Smart contracts based on blockchain technology help eliminate the need for middlemen such as Banks or lawyers. We’ve talked about DeFi in elaborate, in a previous article which can be accessed with this link.
While Dogecoin can not directly engage with smart contracts. The coins can be encoded to be locked in a state. This makes them compatible with the contract until the contract is subsequently released. With the help of the Ren Project, Dogecoin (renDOGE) can now access the Ethereum blockchain and avail of the DeFi network.
The meme Coin
Dogecoin is a meme coin and has a reputation for getting ‘memed’ a lot. Some of the most famous memes that we can find are below.
Dogecoin has been expected to be slightly bearing in nature, meaning it will not see huge jumps in value in the near future. It has stayed low after it attained its all-time high at $0.738 on the 8th of May, 2021. The highest since was $0.3507.
The meme Coin has been an interesting entity in the crypto world. From being the first meme Coin, being highly volatile and having some top tier memes, Dogecoin is one of the most famous Cryptocurrencies of 2021. Hopefully, you liked this article, if you want to learn more about Cryptocurrencies, do visit our website. If you want to learn about NFTs, click on this link to know about them.