Dogecoin’s Defiance To Naysayers
Dogecoin’s price movements this past 6 months have been remarkable. Proving doubters wrong again with it’s dynamic doggy coin price shifts. Most importantly, Dogecoin has built the financial infrastructure in both the crypto-sector and business world. That will ensure its place in the growing cryptocurrency industry.
A Bit Of Dogecoin’s History
After launching in late 2013, Dogecoin’s value remained at just fractions of a cent for the next seven years. While Bitcoin grew to dominate the cryptocurrency market in 2021. Dogecoin’s business exploded in price with rises that included a boost of more than 500% on Jan. 29.
Its rise was triggered by a group of crypto enthusiasts on Reddit looking to repeat in the digital currency arena. As well as a surge aided by tweets from maverick electric vehicle CEO and space pioneer Elon Musk. It was given the nickname “the people’s coin” or “the people’s crypto” by its fans.
This sparked the dynamic growth of the r/dogecoin subreddit, which had reached 1.9 million members by May 20. Large holders also played significant roles in the dogecoin’s rise, as well as its subsequent drops as those “whales” pumped and dumped dogecoins.
Dogecoin’s Dynamic Movement
While the price action likely will continue to be volatile, Dogecoin is now firmly cemented in the public mind and its lasting value among cryptocurrencies is abundantly clear. It has proven that it has what it takes to stick around.
It’s been an erratic few months for Dogecoin’s price. But it has built the foundation and financial infrastructure to survive and thrive amidst the thousands of cryptocurrencies currently fighting for public attention, developer activity, and funding growth.
In terms of market and price movement, since early January Dogecoin rose from what was then already a historically high level of around 1 cent per Dogecoin to a staggering 73 cents a Dogecoin. Although since then it has slid back to generally somewhere in between those two price points.
It is worth noting that for the bulk of Dogecoin’s history. It has generally stuck around the range of a fourth of a cent to half a cent per Dogecoin. It has also rose from being a backbencher cryptocurrency. To now, the 6th largest cryptocurrency with an over $30 billion market capitalization.
Key Considerations For The Emerging Cryptocurrency
The state of the cryptocurrency market remains extremely volatile with critically held views on both sides of the coin. Around the real value of such assets. However, in the process of being bought and traded, Dogecoin has shown to be a valuable player in the crypto market. Here are some key considerations to ponder:
1. It Has Advantages Over Bitcoin
Among the younger demographic that makes up the bulk of cryptocurrency enthusiasts, preserving the environment is highly regarded. In light of that, the much lower amount of electricity required to mine and use Dogecoin compared to Bitcoin could boost its attractiveness as a crypto alternative. Dogecoin uses just 0.12 kilowatt-hours of electricity per transaction, as compared to Bitcoin’s massive 707 kilowatt-hours.
Some enthusiasts are concerned that there is no limit on the total number of Dogecoins that could eventually be mined. Compared to Bitcoin, which does have a hard cap. A maximum of 5.26 billion additional Dogecoin tokens can be mined yearly.
With over 129 billion coins already in circulation. This capped mining rate ensures Dogecoin’s inflation rate will steadily decline over time. While still providing an incentive to continue mining it. Dogecoin is better than Bitcoin. In that it has lower fees, higher transaction speed, and is not concentrated by the top 2% holders. Its price is more stable, mining is profitable, and it has a mechanism to negate the effect of lost coins.
While Dogecoin is theoretically inflationary. Its predictably declining, mathematically inevitable inflation rate potentially gives it more of a stable value than national currencies.
2. Dogecoin Is Stable
If you observe the price movement of Apple (AAPL) and Tesla (TSLA), you would see that Apple is more stable than Tesla. There are several reasons, but the main reason is the number of outstanding shares. Apple has more than 16 billion shares outstanding, whereas Tesla has only around 1 billion outstanding shares.
Similarly, due to 130 billion outstanding Dogecoins and 5 billion more coins each year. Dogecoin is a more stable cryptocurrency than Bitcoin. A cryptocurrency will never become mainstream unless it is stable. Over the last eight years, Dogecoin showed that it is a far more stable currency than Bitcoin is.
3. Dogecoin Is Trading Higher Than Its Early 2021 Price Range
Cryptocurrency, in general, have taken a beating over the past few weeks. The shib token has not been immune from that trend. Its value often moved independently from Bitcoin or the general crypto market as a whole during its ascent. And its price has hovered in the $0.30 to $0.40 range for nearly a week.
This stability has come despite the average size of trades and overall trading volume dropping sharply. The average transaction value, which increased starting in mid-April, peaked at $1.16 million on May 23. Then slid back to less than $240,000 by May 26, according to data supplied by BitInfoCharts. Dogecoin’s worth never fell far below $0.30 during the past month.
4. It’s Gaining Acceptance In The Crypto World
Like any currency, Dogecoin gains value as it becomes more widely accepted as a currency of exchange. While many of small businesses now accept Dogecoin as a form of payment, their economic impact is effectively zero. However, some larger entities are also accepting Dogecoins. Including the NBA’s Dallas Mavericks organization, which will let customers use it to buy both tickets and merchandise through BitPay.
The teams official press release states that the “ability to accept cryptocurrency expands a business’ sales opportunity into international markets. Where accepting credit cards is not practical. While reducing high fees and increasing payment transparency and efficiency.” Celebrities such as Snoop Dogg, Gene Simmons, and Kevin Jonas have also endorsed Dogecoin.
Dogecoin looks to continue to be volatile as it moves from its own inherent dynamics. As well as with the overall cryptocurrency markets. Dogecoin’s greatest achievement this past year is not just in having proved its doubters wrong. But, in establishing the infrastructure and public interest that will allow the network to continue to grow. It has earned itself a permanent place in the dynamic crypto-economy.