The Rise of the Doge: Part-II [Explained]
This is the second article of the Dogecoin series. If you haven’t read the first one, here’s the link.
Dogecoin, the sensational cryptocurrency that has been on the headlines for the last few months, is experiencing a bearish market sentiment for the first time this year.
The market might be seeing a price correction after all these long bullish runs, but there is no way to deny that Doge has been a complete gamechanger.
Once again we saw the power of social media trends and how it can influence market sentiment. However, this wasn’t the first time that people rooted for Doge. Something similar happened last year too.
In 2020, Dogecoin made the highlights when a bunch of teenage crypto traders created a challenge to increase its value and get to $1.
The price of Dogecoin has nearly doubled since July 6, rising 95% to $0.00448 from $0.0023.
Did they succeed? No. But they sure did spike the price by as much as 95%. “The price of Dogecoin has nearly doubled since July 6, rising 95% to $0.00448 from $0.0023,” reported Fortune on July 14.
This brings us to meme coins. A type of crypto that only rises in value when a bunch of people starts buying like crazy.
The World of Memecoins
Memecoins are a category of cryptocurrency that is purely made for fun purposes with apparently no real-world value.
Think of your first standard drawings, chances are they were pretty terrible. Now, if someone buys all of those papers for a million-dollar and sells it to someone else for more money.
Out of nowhere, your ugly-looking pictures have become really valuable with rising demand in the market. Although since it has got no real artistic or historical value, the price can drop at any time.
This is meme coins in nutshell.
People (read programmers) create these coins to poke some fun and experiment with the crypto market.
Dogecoin is (was actually) one of them. It had no real value even a couple of years back when it wasn’t even one-fifth of a cent. But then things changed. People started believing in Doge and invested an awful lot of money in it.
So from apparently no real-world value to having a price of nearly 70 cents, TikTok made all the difference. Although it’s now falling, measures are being taken to legitimize Doge as a valid investment option. This is good news for Doge owners and enthusiasts.
But that’s not the case for many other meme coins like Safemoon, Hoge, Shiba Inu, etc. These currencies will only rise in value when people try to send them to the moon. And then will fall steeply with all of your money if you hadn’t taken it out by that time.
Doge and The Tiktok Challenge
Talking about sending it to the moon, Doge lovers tried to get a moonshot in 2020.
The challenge started when someone posted a video on Twitter saying “Dogecoin is practically worthless. There are 800 million TikTok users. Once it hits $1, you’ll have $10,000. Tell everyone you know!.”
The person named Jason Gallante also said that even a $25 investment in the coin will do the job.
You can call him a visionary or some over-enthusiastic crypto guy — but his video managed to create a trend that would make Doge relevant in the market. Hundreds of videos started circulating on TikTok promoting the currency and the math was simple.
Since nobody wanted to miss out on the golden opportunity, the massive influx of investment made the value of Doge spike. “The price of Dogecoin has nearly doubled since July 6, rising 95% to $0.00448 from $0.0023”, reported Fortune on July 10.
A Business Insider report said, “24-hour volume surged above $878 million by Wednesday afternoon, a 683% increase from its average daily volume over the past year.”
The situation was going so out of hand that even Dogecoin’s Twitter handle issued a warning.
The Aftermath
After rising to the peak value of around $0.005, Doge had a rather steep downfall. Within weeks the teenage enthusiasm started fading away and the market taking its own course initiated the price correction.
The goal of the challenge was to make Dogecoin climb a massive number of stairs and sit beside the USD on the price chart. Obviously, it didn’t happen. But that doesn’t mean it was a failure.
The trend managed to successfully lay the first brick of something extraordinary that would take Doge closer to $1.
The recent spike of Doge and the TikTok challenge that happened a year back might not directly be related. But the correlation is strong and one could say that the incident from 2020 made Doge more approachable to the average investors after the GameStop incident.
The Future of Dogecoin
Dogecoin started as a meme coin but now the optics have changed. Most of the people who believe in crypto are still bullish about it.
Billionaires like Elon Musk and Mark Cuban and companies like Kessler Collection, Post Oak Motor Cars have shown a clear interest in Doge. And with all the positive sentiments that Doge has garnered, it is recovering from the sharp downfall of 24th May.
If everything goes as planned and more players come to the field it’ll certainly be a positive sign for the crypto sensation.
[Disclaimer: This is a commentary on the cryptocurrency, not intended to be any kind of financial advice]
