If anyone told cryptocurrency experts back in 2019 that in 2021 BTC token price would reach 60,000 USD and that another token would be the hottest conversation topic, they would probably be very puzzled and confused. Yet, today, it seems that the very same thing is completely true and still, most experts are just as confused as they would have been then. The present context and ongoing crypto bull run do provide some level of explanation for the ascendance of dogecoin. But, it still falls very far from any comprehensive understanding of what is happening in the altcoin domain of the crypto markets. Instead of waiting to get explained, dogecoin is marching on, so far resisting any massive reduction in price and staying well beyond any record price prior to this year.
As this takes place and the chatter around the same token grows in volume – expectedly, for the age of esports, memes, and social media – cryptocurrency analysts are trying to figure out what impact would this process continue to have on the wider altcoin space. They are also measuring and gauging the impact on the price of the bigger coins like those of the bitcoin and ethereum network. Hopes are that this way, at least some level of explanation can be attained and that it will shed light on whether the current rise of the dogecoin is a fluke or a crypto trend that will only make its presence be felt by the markets in the time to come.
History of Doge
Like all things crypto, the history of dogecoin is not that long, but it makes up for what it lacks in length with the sheer number of things it provides to the interested listener. The network was brought up and established in 2013 by software engineering. They decided to make this payment system as a form of practical joke and poke fun at the rampant speculation that was taking place at the time in crypto markets. Even the visual aspects of the coin are humorous, with the Shiba Inu dog on its cover, which was then a popular doge meme that was spreading globally.
The network quickly found its technical footing and began working, much like the BTC token and the bitcoin network, flawlessly. At the same time, dogecoin was even faster in establishing its online community and finding a lot of supporters. Some of these actually bought coins and traded in them, but many more simply wanted to take part in incline chatter and have fun along with this cryptocurrency joke. But, the same joke would eventually turn into something drastically much more serious.
Traction and Following
Dogecoin got plenty of social media traction almost immediately after its launch. At first, the community of more serious and dismissive cryptocurrency activists both hailed the coin and indirectly shunned it as something that cannot find any real backing in the financial sense. This was a very logical position to have back in the time of the second bull run, which began in 2016. At that point in time, most analysts were firm in the belief that cryptocurrencies that succeed are those that do it either through practical means or through unbridled popularity and explosion to media attention. Ethereum was seen as the cryptocurrency that brings technology solutions to the table, with things like smart contracts and decentralized finance procedures.
On the other hand, bitcoin was the media star of the crypto space with endless amounts of traditional media and social media attention. Dogecoin fit in neither of these categories, yet, fast forward four years later and the same crypto token surpassed the value of 0.7 USD. Furthermore, there are strong indications that the same levels will not be its record values in this bull run. Instead, even better times could be ahead of dogecoin even though nothing of its internal network or blockchain fundamentals value has changed.
Elon Musk Factors
In 2021, all cryptocurrencies began experiencing an astronomical rise. It began like it always does with bitcoin as it broke through the old record from 2017 and keeps climbing week after week. The rise ended with the range of around 65,000 USD, but the bull run did not stop there. Instead, the wave swept the altcoins as well. Ethereum was the first to slowly begin its ascend but others followed as well. Dogecoin, interesting enough, was not in the same boat right after the year and the bull market began. Instead, it took a couple of months for it to begin breaking through its barriers and set new record price values.
Another huge change in the dogecoin ecosystem was the odd but very welcomed support from none other than Elon Musk. He was sharing news related to the crypto in general, but often enough, Musk talked about dogecoin in particular. Then, the news came that Tesla Motors no longer accepts bitcoin for the purchases of its vehicles. That brought about a strong plummet of the crypto prices, especially the BTC token but did not impact dogecoin as much. The same cryptocurrency also quickly bounced back on the news that Musk sees it as a much more ecologically friendly token than bitcoin in terms of energy consumption.
On the surface, it might seem that the future of dogecoin is bright. It has a network that uses less energy than many other cryptocurrency systems, including bitcoin. It can captivate the minds and hearts of the meme generations and ensure it has a lot of media traction, including that of people like Elon Musk. Finally, it provides a lot of opportunities for investors who are looking for fresh tokens where they can invest substantial amounts of money. But, as bitcoin knows all too well, it is hard to be the new shining entry in the global crypto arena.
The fame of dogecoin will last for a short while and numerous contenders are already looking at its throne. These include things like shibecoin, which is basically an exciting knockoff, but also things like chia, a new cryptocurrency system that uses proof of space and time for its token generation. It has an insanely smaller footprint than dogecoin and could have that advantage from an ecological perspective. So, as dogecoin is already figuring out, being the top dog is not a lifelong job.