I think it is time to start talking seriously about Dogecoin (DOGE), given the fact that it nearly reached $0.70 yesterday, May 5th, 2021, after yet another surge. But first, let’s just briefly cover what Dogecoin is, just in case someone is somehow still unfamiliar with the top-performing cryptocurrency of the last year.
What is Dogecoin?
Back in 2013, when Bitcoin was starting to attract more serious attention, a developer called Jackson Palmer came up with the idea of a joke cryptocurrency. The reason for this was that he thought that the crypto market is too serious and given the fact that a lot of crypto activity was a result of hackers and online criminals using it, the crypto sector threatened to go down a much darker path.
So, as a fan of technology and memes, he created a joke coin based on a meme popularly known as Doge, featuring a Shiba Inu. The newly created Dogecoin (DOGE) also used the same photo of Shiba Inu as its logo, and it helped lighten up the mood in the crypto industry. However, Palmer did not have great expectations for the coin. He even decided to step away from the project, leaving it pretty much rudderless for years. He never decided on the coin’s maximum supply, nor did he plan a specific use case. To him, it was just a joke that will live for a couple of weeks and then join the crypto graveyard.
However, despite him giving up on DOGE, the community loved it for some reason. This was a time when crypto and memes were on the rise, and DOGE did not exactly explode in popularity, but it managed to survive, keep its community, and, against all odds, live for the next 8 years, until today.
Why did DOGE go Big?
Over the years, DOGE continued to push through various challenges that the crypto industry was facing, constantly remaining among the top 100 coins, and even top 50 for the most part. I admit that I did not think much of it when I first encountered it several years ago, but the same cannot be said for Elon Musk.
Being the world’s most popular genius billionaire, the founder of SpaceX, Tesla, PayPal, The Boring Company, the not-a-flamethrower salesman, and much more, Musk saw something in DOGE, and he publicly announced on Twitter that it is his favorite crypto. This was long before Tesla invested $1.5 billion into Bitcoin, and before Musk himself admitted to owning cryptocurrencies.
In fact, his involvement with crypto started as a joke in its own right, as he occasionally tweeted crypto references, or, on some occasions, genuine views about the crypto space. But people soon realized that, whenever he referenced DOGE, the coin’s price and volume would briefly surge. That continued for some time until early 2021.
Doge is More Than Elon Musk
Now, while Musk has become known as a DOGE supporter and one of the biggest influencers that the coin has, the DOGE growth did not come entirely because of him. Earlier this year, a Reddit group that frequents the subreddit known as r/WallStreetBets decided to conduct a short squeeze. Essentially, what happened is that a group of institutional investors decided to profit off of several companies, and primarily off of GameStop stock, by shorting their stocks, and thinking their influence would cause the stocks to drop and secure the money for the traders.
Basically, they were destroying firms for profit, and Redditors decided that this won’t do. So, they started a massive campaign where they kept buying stocks, boosting their price, and causing institutional traders to lose massive amounts of money. How does this tie back to DOGE, you may ask? Well, someone decided to use the hype at the time and ‘borrow’ the Reddit group’s name and influence to try and push DOGE to $1.
They failed, of course, but the idea did not die out, as we can see right now. In fact, I am pretty much convinced at this point that DOGE will hit $1 in weeks, or maybe months to come. Musk himself continued to praise the token and draw attention to it, further boosting its price and performance, and people simply kept coming and investing.
Doge and Development
DOGE even managed to retrieve developers who did nothing to improve its tech over the years, thinking it a lost cause. In other words, the story of Doge is a story of the biggest comeback in crypto history, where an underdog (pun intended!) survived and thrived against all odds.
If you care to know how big DOGE managed to become, let me point out that it is now (at time of writing) the 4th biggest cryptocurrency by market cap. That means that it has outperformed the likes of:
- Chainlink — a revolutionary oracle network that brings off-chain data to the blockchain.
- Uniswap — the world’s largest decentralized exchange.
- Litecoin — commonly referred to as the silver to Bitcoin’s gold.
- Bitcoin Cash — a bitcoin fork over which entire hash wars have been fought.
- Tether — the world’s biggest stablecoin, as controversial as it is.
- XRP — Ripple’s security/not security token (depends on who you ask) which teamed up with countless banks and financial institutions around the world.
There are also many others that DOGE has outperformed, but the fact that all of these massive crypto giants are now below DOGE is just mind-blowing. The only three projects that sit above DOGE now are Binance Coin (BNB), as the third largest, Ethereum (ETH) as the second-largest crypto and the world’s largest altcoin, and Bitcoin itself. That is how big DOGE managed to become this year.
So, with all that said, tell me — can you truly still call DOGE a joke?