According to the analysis house Coinmarketcap, Dogecoin (DOGE) is currently trading at around 0.13 US dollars (as of April 28, 2022, 13:28) – this is the equivalent of around 0.12 euros. In the past 24 hours, the market price has increased by around 0.7%. The market cap is currently around $17.8 billion. Read everything new about Dogecoin, Bitcoin and Co in the Handelsblatt Newsblog.
Price of Dogecoin: how has it behaved since its launch?
In terms of market capitalization, the Dogecoin currently ranked eleventh among the largest cryptocurrencies. The dog brand cryptocurrency was launched in December 2013 and has been met with greater popularity than its creators had anticipated. According to co-developer Jackson Palmer, however, Dogecoin never considered itself a serious competitor to market leaders such as Bitcoin and Ethereum.
“Dogecoin is not used by people who want to get rich with it,” he told US portal “Insider”. This is also demonstrated by the development of the Dogecoin course: During the first five years after the introduction of the currency, the rate of the cryptocurrency remained below one cent. In January 2018, the market value of dogecoin surpassed the two billion dollar mark and hit a brief all-time high of 1.4 cents. Shortly thereafter, however, the value of the currency once again fell below the cent mark.
Contrary to what the founder of the crypto PaImer said, one rich man in particular is interested in Dogecoin: Elon Musk. In December 2020, the founder of Tesla intervened for the first time. “One word: Doge,” read a Twitter post from Musk. On December 21, 2020, he exchanged blows with American Bitcoin investor Michael Saylor on the short message service – with consequences for the price of Dogecoin: It jumped 200% in a few days.
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Statements from prominent supporters and critics therefore have a significant impact on the price of Dogecoin. The fact that individuals like Elon Musk are triggering such moves in the crypto markets and that Musk’s tweets regularly lead to sometimes violent price swings on cybercurrencies is causing discontent in places. Critics, including Doge founder Jackson Palmer, accuse the Twitter shareholder of market manipulation.
Also in 2021, social internet platforms influenced the rise in cryptocoin prices: users joined forces on Twitter and Reddit to drive up the price of dogecoin. With success: The price then climbed to a new high of 5.4 cents. And that’s not all: on May 5, 2021, the cryptocurrency reached a market capitalization of over $85 billion. On May 8, 2021, the price of Dogecoin hit its previous all-time high of $0.73 – a healthy 60 cents.
In 2022, Musk repeatedly staked Dogecoin. This is one of the reasons why the cryptocurrency rate is considered highly volatile.
What factors affect the price of Dogecoin?
In the meantime, the big hype around Dogecoin has died down a bit. More recently, the cryptocurrency surged on April 10, 2022 after a tweet from Tesla boss. In it, Musk raised the option that Dogecoin could also be accepted as payment for a new Twitter subscription model (“Twitter Blue”).
The Tesla founder had already confirmed in December 2021 that the electric car maker’s goods could be purchased using cryptocurrency. In May of the same year, Elon Musk called Dogecoin a “scam” on American television – a price drop of more than 28% followed.
Read about it: Tesla boss Elon Musk drives up Dogecoin
The war in Ukraine also influences the price of the volatile cryptocurrency: with the start of the war, investors increasingly retreated from risky investments – the price of Dogecoin fell by more than 20% on the day of the war. Russian attack – February 24, 2022. With the Ukrainian government announcing that they would also be accepting Dogecoin donations, the price rose by around ten percent. Other cryptocurrencies performed similarly during this time.
Dogecoin Price Prediction: How Do Analysts Assess the Future?
There are no reliable predictions for prices in the crypto market – Dogecoin is no exception. Digital assets have proven time and time again in the past how unpredictable they are. Dogecoin in particular is considered particularly volatile. On the one hand, this is due to the fact that a few investors hold a large portion of all Dogecoin shares. On the other hand, organized groups regularly make the effort to briefly boost the price of cryptocurrency.
Dogecoin has long been among the ten most valuable cryptocurrencies by market capitalization. Until April 2022, however, the price trend curve was constantly downward; the coin meme only landed in twelfth place for a while. Since Dogecoin is not a limited cryptocurrency and new coins are constantly being created, there is no good reason to hold onto it for the long term.
What is Dogecoin?
Dogecoin started as a joke by the internet community and is based on the “Doge” meme, a Shiba Inu. Crypto founders split from cryptocurrency in December 2013 Litecoin deactivated. They wanted to create a cryptocurrency that would be fun, lightweight, and appealing beyond the mainstream Bitcoin audience.
“Doge came out to make fun of Bitcoin,” said Pat White, CEO of US financial platform Bitwave. Dogecoin gained cult status in early 2021 when Dogecoin supporters on a Reddit forum pledged to raise the currency’s value “to the moon”. Amateur traders had already teamed up via Reddit in 2021 to inflict billions in losses on hedge funds by acquiring Gamestop shares.
Read about it: One Year After Gamestop Rally: What’s Left of Reddit Traders
Like other cryptocurrencies such as Bitcoin, Dogecoin is based on blockchain technology. Dogecoins can be created using graphics cards on high-performance computers, and the so-called proof-of-work process is used to create new coins, as is the case with Bitcoin. Subscribers can download a copy of the full blockchain, which is constantly updated. The Dogecoin blockchain uses encryption to ensure that transactions cannot be tampered with.
In the United States, Dogecoin is increasingly used as a gift and tip for social media campaigns.
Which exchanges is Dogecoin (DOGE) tradeable on?
If you want to trade with Dogecoin, you will find what you are looking for in almost all major crypto exchanges: specialized crypto exchanges such as Bitpanda, Kraken or Coinbase list the currency as well as broader trading platforms such as eToro. On the latter platform, you don’t need a blockchain-synced wallet. A simple eToro account is enough.
Who are the founders of Dogecoin?
Cryptocoin is the brainchild of American software engineers Billy Marcus and Jackson Palmer. The latter announced in February 2019 that the crypto experiment had failed for him. Contrary to his hopes, cryptocurrencies have not contributed enough to society. In 2021, the Doge co-founder tweeted again about a possible return to the crypto market: “My answer is definitely no,” he wrote. According to him, cryptocurrencies are “right-wing turbo-capitalist technologies that only the rich benefit from”. Co-founder Marcus partly agreed with him.
After: How professional investors are investing in alternatives to Bitcoin and Ethereum