Dogecoin: How did DOGE become so successful
Dogecoin is one of the oldest cryptocurrencies on the market. It started in the year 2013 and has enjoyed much attention ever since. One remarkable event was the sponsoring of the Jamaican bobsled team in 2014. Most recently DOGE has seen a drastic increase in price and many people wonder why and how did this happen?
In today’s article we are going to explore Dogecoin and outline the reasons for its overall success and the recent price action on the market.
Dogecoin is a meme
If you never heard from DOGE before you have to start with the birth of this particular cryptocurrency. While any other crypto is usually designed to fulfil at least one use-case and solve a problem, Dogecoin was designed as a meme. Meaning that the creators of DOGE never intended a serious project.
It was meant to spread joy and fun in the crypto-community as a whole. And as such the Shiba Inu was chosen as the mascot and symbol of Dogecoin. The Shiba Inu is a race from Japan and aside from the fact that it looks very cute, the Shiba Inu is known to have a very strong and independent will.
And in many was those traits of its mascot reflect some of the qualities of Dogecoin. Over the years it has persisted, despite the fact that it has a very different value proposition.
DOGE has an infinite supply
Many cryptocurrencies picked up on Bitcoins idea that sound money should come with a limited and therefore finite supply. Dogecoin on the other hand was designed as meme and with no serious intend.
Its supply was designed to be infinite which makes it very hard to say what DOGE is really worth. While one could argue that 1 DOGE has intrinsic value, the story of digital gold is most likely to fail. Over the years Dogecoin will probably inflate more and more. But why is it enjoying such a huge rally?
From Elon Musk to Wallstreetbets
One reason is the endorsement of Doge by Elon Musk. He is not only the richest man in the world, but also a proponent of the funny meme. This had brought Doge to the attention of new retail investors who have thrown a tremendous amount of capital, once they learned via twitter that Musk is into it.
But that’s not the reason for the recent price surge. It is believed, that a group of redditors called Wallstreetbets is behind the strong rally. While the group itself denies allegations with DOGE and in fact ignores cryptocurrencies, the overall movement of new traders that are inspired by TikTok and the angry mob of Wallstreetbets might be the reason for its recent success.