Dogecoin, Twitter’s favorite cryptocurrency, has been making waves not only across the crypto sector, but it became the center of discussion among the nocoiners as well due to its unforeseen and massive popularity. All the hype surrounding Dogecoin is a very recent phenomenon, and during this hype season, DOGE managed to grow over 10,000% and outperformed the likes of bitcoin and ethereum.
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What Is Dogecoin?
Dogecoin started as a Bitcoin parody back in late 2013 and was developed by two ingenious software engineers Billy Marcus from IBM and Jackson Palmer from Adobe. It was inspired by a super-viral meme of Shiba Inu dog at the time, dubbed as the ‘meme of the internet.’
Dogecoin wasn’t intended to be used as a currency or serve a real-world utility. However, Dogecoin’s Reddit community started using it as a tip for people who contributed funny or valuable comments. This tipping system soon spread out across Reddit and Twitter to reward content creators, as it was cheap and worth a fraction of a penny.
Dogecoin inherits a lot of its technology from Litecoin, referred to as Bitcoin’s little brother. It uses a Proof-of-Work (PoW) consensus mechanism that uses Scrypt, an efficient and GPU-friendly hashing algorithm. Dogecoin has a one-minute block time on average, which makes it 2.5x faster than Litecoin. Dogecoin miners are rewarded with 10,000 DOGE for every block they confirm and validate.
The hype surrounding DOGE isn’t about the underlying technology or the fact that the community transformed it into a tipping currency. DOGE became a crypto-meme and was picked up by fun-savvy younger audiences, celebrities, and influencers, including Elon Musk, the CEO of SpaceX and Tesla.
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The Dogecoin Hype
Dogecoin was just another cryptocurrency project worth a fraction of a penny throughout these years, and it quickly became the center of attention for some of the most prominent media outlets and influencers. How did it all happen? Let’s find out!
It all started from WallStreetBets, the subreddit with over 10 million users. This subreddit was behind the ‘pump and dump’ Gamestop saga. The community was mainly focused on stocks and options trading, but they decided to tap into the crypto sector, and as expected, they picked up DOGE as a fun move.
Soon after, Dogecoin was picked up by Elon Musk, and his series of tweets helped DOGE touch new ATH levels. At this point, many celebrities and media influencers came out to support Dogecoin as a fun and lighthearted activity. Dogecoin surpassed the $100 billion market cap at its peak when a single DOGE was worth $0.7 (from $0.004 at the start of 2021). That’s a lot of gain for a cryptocurrency that started as a joke, but that’s the power of the community!
Current State of The Market – DOGE to the Moon
Dogecoin is fuelled with the increasing attention from media outlets, celebrities, and influencers. Every time an influencer tweets about DOGE, it sparks a conversation that is essentially free marketing for Dogecoin. The recent SNL appearance of Elon Musk brought a short-term crash to the DOGE market as he called it a hustle on the show.
Soon after, DOGE went significantly up in value after Elon tweeted that he is working with the Dogecoin developers to improve the underlying technology and transaction efficiency. This tweet sparked a debate across Twitter, and some people took it as a joke because the Dogecoin repository has been unmaintained for many years.
Before Elon’s SNL appearance, he announced on Twitter that SpaceX is sending a satellite to the moon, dubbed DOGE-1, and it is fully funded and paid for in DOGE. The company responsible for the satellite operation confirmed that the project is fully paid for in DOGE, and it will become a unit of account for lunar business in the space sector – unbelievable but true!
What the Future Holds for DOGE?
DOGE has no apparent intrinsic value other than a strong community supporting this memecoin through highs and lows. The amount of hype that has been created around Dogecoin isn’t going to fade away anytime soon, and it has become a new de-facto trend for influencers to join the DOGE hype train.
Dogecoin is now literally going to the moon, but are you?