Will Dogecoin Explode? Why is Dogecoin rising?
Why is Dogecoin rising in value? Will Dogecoin explode this year? More importantly, is now an opportune time to invest?
Dogecoin (DOGE) is a cryptocurrency that many people love to hate. Literally a joke coin, Dogecoin was launched in December 2013, to demonstrate how easy it was to create a new currency. At the time, chief developer Billy Markus, even made it clear that Doge was not a serious asset. However, some argue that this is no longer the case.
Why is Dogecoin Rising in Value?
Despite originally serving no real purpose, Dogecoin has an incredibly loyal fan base.
Shortly after launching in 2013, hundreds of Dogecoin memes started going vial on on social media. Dogecoin enthusiasts then began to use Doge to tip meme creators.
For the most part, few people saw Dogecoin as anything but a joke coin for the next 4-years. However, all this started to change in March 2017.
How Dogecoin Reached a Top Spot on CoinMarketCap
After the second Bitcoin halving in July 2016, new-to-market investors began rushing to buy cheap altcoins like Dogecoin.
At the time, new investors were unaware that Doge was a relic of the early crypto meme scene. Early Dogecoin project leader Jackson Palmer, therefore, went to lengths to stress that Doge was in way a serious cryptocurrency.
Despite Palmer’s warnings, December 2018 eventually saw Dogecoin attain an all-time price high of $0.15.
Of course, many other altcoins in 2018 made major gains also. However, Dogecoin didn’t surrender all it’s gains during the following bear market. Instead, Dogecoin was able to retain some value. More importantly, Dogecoin started being traded as a serious digital asset.
Why is Dogecoin Going Up Now in 2020?
Make no mistake, most people still consider Dogecoin a joke coin. However, as of May 2020, there are several reasons why investing in Dogecoin might prove lucrative.
- Dogecoin price performance consistently mirrors that of Bitcoin. Dogecoin might be a relic of the early crypto meme scene. However, since 2017, Doge prices have consistently risen in tandem with those of top digital assets like Bitcon.
- Dogecoin isn’t as hype-sensitive as other altcoins. Despite Dogecoin regularly riding on the coattails of Bitcoin, Dogecoin is not as hype-sensitive as other digital assets. As a result, Doge prices don’t drop as sharplty during market downturns.
- Doge survives where other altcoins don’t. Despite launching as a joke cryptocurrency, Dogecoin has been successful in retaining a top 100 CoinMarketCap position since 2013. During this time, hundreds of other digital assets have become obsolete.
- Dogecoin is new-to-market investor-friendly. At present, Dogecoin benefits from a relatively high CoinMarketCap position. However, it is still possible to buy Dogecoin for just $0.002494. This makes Doge a safe investment for new-to-market investors on a budget.
Will Dogecoin Explode at Some Point?
Dogecoin is going up at present, thanks to Dogecoin once again riding on the coattails of Bitcoin. This being the case, if the next Bitcoin halving results in a major rally, Dogecoin might well explode and retest former highs of $0.15.
If Dogecoin does retest $0.15 at some point, anyone who invests today will make a considerable profit. However, it is important to note that Dogecoin is by no means the next Bitcoin. Dogecoin is simply a quirk cryptocurrency that has a habit of surprising people.