The rise of cryptocurrencies was sudden and how they rose to fame by becoming the most valuable and sought-after assets is a roller coaster ride. Several cryptos came and tried to make their way into the markets, some could survive while others fizzled out. One such cryptocurrency, Dogecoin, was an unexpected gem that came into being as a joke and turned out to be an important part of the ecosystem. Dogecoin was not considered one of the serious competitors for a very long time. It was only in 2021 when memes started becoming more and more popular that the Dogecoin graph saw its first significant rise. In April 2021, DOGE reached its highest-ever value.
The influencer of the rise
If you are wondering how a ‘memecoin’ gained so much popularity and rose to the ranks of becoming one of the top contenders of crypto charts, one of the biggest influencers was the CEO of Tesla, Elon Musk. The constant and unending support that he extended over to DOGE on public platforms like Twitter and even during interviews was immediately linked to a spike in the Dogecoin graph regarding its value. Musk even promised to take DOGE ‘to the moon’. His control over the prices of DOGE is true even today. In March 2022, the value of this cryptocurrency rose again and crossed the 20-billion-dollar mark. The gain was significant – approximately 10 percent. Within 24 hours, Dogecoins worth more than $1.5 billion were traded on several different platforms. This was sparked by Elon Musk’s tweet. Musk is now being deemed as ‘Doge Father’
Yes, understanding the graph and the pattern of the rise of DOGE is important. However, before you buy Dogecoin cryptocurrency, it would also be potent to understand whether the investment would be sustainable in the future. While the performances may stand out in the current scenario and recent market trends, will the Dogecoin graph see continuous peaks or will it slowly fizzle out too? Long-term forecasts regarding the price of DOGE in the future seem positive. This could be owing to the benefits this coin receives from the vocal and wide social media communities that stand in support of the coin. It has one of the most active and loyal bands of followers that are committed to taking the price of DOGE high.
The uses of DOGE
One of the major reasons why this coin is highly popular and can be used by people in different capacities is because of what it offers. Deviating majorly from its definition of simply being a memecoin, here is how this coin can be used:
- Payment Method – Initially, the people rushing to buy Dogecoin cryptocurrency were due to it being a mode of payment. Since its inception, it has maintained that stance while expanding to a lot more. The transaction fees that DOGE operates on are low and therefore, it is characterized as one of the most feasible low-cost money transfer systems. Many companies like Tesla and Nordstrom have also accepted it as a mode of payment.
- Online tipping – The Twitter tipping features are popularly used by Dogecoin. Since this coin is popular on social media, it is a great candidate that can work in online tipping scenarios – even more than ETH, ADA, etc. Another platform, Reddit, also makes use of DOGE to tip users for posts that they like. This could be another reason why buying or holding on to Dogecoin would be a good idea.
- Community – The vast and vibrant community that fuels the running of DOGE holds great value when looking to buy this crypto. One of the best ways to make use of this feature would be in the form of day-trading. The friendliness associated with the DOGE community can be a helpful helpline to be able to reap profits from day trades. The volatility can be treated as an asset with the assistance of people who would be present to identify and predict patterns.
Since Dogecoin has an unlimited supply of cryptos that can be mined, the price is predicted to remain reasonably constant. This means that it is great crypto for beginners and low-risk people to start their trading journey. Additionally, DOGE is a highly liquid asset, this acts as an advantage for peer-to-peer trades. It is enlisted in among the top cryptocurrency exchange platforms and is accepted widely by several international stores. The support, backing, and trends have made DOGE a promising buy.