Industry News Dogecoin is one of the Winners of the August Crypto Price Jump

Dogecoin is one of the Winners of the August Crypto Price Jump

August 17, 2021

Cryptocurrency prices have been spiking in recent days. That includes bitcoin as the leader of the pack in terms of market capitalization and token price, but also other digital currencies as well. Money coming in saw a range of investments, arriving from both ordinary citizens across the world, but also crypto whales and some institutional players, even though none did come out in a dramatic fashion like companies previously. Some six months ago, entities like Square and Tesla Motors managed to draw a lot of attention and positive investment exposition thanks to their big buy-ins in the crypto domain. Presently, no such development is taking place but the prices are still on a constant rise. Collectively, they reached a level of 2 trillion USD in market capitalization of the total crypto space. In the mix of all of these digital currencies and their successes is also dogecoin.

It has been, surprisingly, among the biggest winners and managed to rebound in a dramatic fashion. The meme-based token, which comes with a strong satirical aura, has managed to catch the attention of not just Elon Musk, but also other big names from the investment domain. Despite its comedy background, modest start in environments like esports tournaments and online forums, as well as a small tech footprint, especially compared to things like the ethereum network, dogecoin successfully added some 10 percent in value last week alone. Because of that, it managed to climb to over 0.30 USD per token for the first time in nearly two months. This is good news not just for the dogecoin investors, but also many others who are involved with the crypto market in one way or another.

Support from Mark Cuban

One of the most unexpected quarters from which dogecoin got support in the previous period was from another billionaire who publicly discussed its benefits. That person is Mark Cuban, a billionaire investor who recently also talked about the issues that the US legislators could force upon the crypt space. In this regard, he publicly stated that he fears that the new crypto tax reporting laws would put a stranglehold on the cryptocurrency and blockchain industries.

In regards to dogecoin, Cuban said that he feels that this cryptocurrency is actually the strongest candidate among all major networks for payment processing. Elon Musk agreed with this notion and said that his view of the same cryptocurrency aligns with the famous owner of the Dallas Mavericks. This comes as an interesting counterpoint to the idea that dogecoin is useless in comparison to BTC tokens for example when it comes to real-world application. Instead, it is only relevant as a meme investment option that rides exposure and public interest as a quick bet for a huge turnaround of an investment.

Doge Effectiveness

To those who have followed the crypto domain for a long time, it might sound strange to hear the notion of dogecoin effectiveness come together with things like ease of transaction. After all, this cryptocurrency came about as a joke on the entire field of cryptocurrencies and its creators gave very little attention to the same token’s ability and technical prowess. Yet, recently, Cuban went out to a big news media company, more precisely CNBC, to discuss the value of dogecoin as a digital currency. He said that it is a medium that can easily be used for the acquisition of services and goods online, just like any other cryptocurrency. Cuban also underlined that the same token has a strong community behind it and that it actually employs dogecoin for transactions.

For them, the token is an actual medium of exchange, unlike in the case of BTC. For many who hold it, no matter if they are regular individuals with little financial means or crypto whales who would invest millions of USD into the same space, bitcoin is still an asset. That asset should hold value over time and become more and more expensive. For all of them, BTC is more similar to an artwork that should appreciate in value. For the dogecoin community, their token is more like a regular digital USD. Soon after Cuban made his remarks, Elon Musk stated that he sees the dogecoin network in the same manner.

Positive Exposition

Discussing dogecoin on national news media is not the end of the positive exposure this digital currency is getting from some high-profile individuals. Both of the previously mentioned billionaires took the time and effort to practically aid the network. Now, Mavericks merchandise can be bought using dogecoin. This summer will bring even more special offers for anyone who wants to use dogecoin for the same purpose within the Mavericks shops. For Elon Musk, that move included making the DOGE-1 Mission to the Moon. The same SpaceX venture should take place early in 2021. The company should launch a satellite that will get into a Moon orbit and the same mission should be funded by dogecoin directly. This is also a play on the sub-meme popular in the dogecoin community which often refers to the price of dogecoin reaching all the way to the Moon.

Price Path Forward

The trajectory of dogecoin price was even more volatile and violent than its bigger and more serious cousins. In 2021, the price of a single dogecoin token reached 0.7 USD, climbing from just one USD cent to that figure in a matter of months. However, once the May crash took place the price dropped by over 70 percent, exceeding the losses of networks like bitcoin or ethereum which also lost a massive amount of their market capitalization.

At the same time, dogecoin now has huge competition from things like Shiba Inu coin, another cryptocurrency that basically plays the identical cards as the dogecoin network. That is making the ecosystem of joke cryptocurrencies more inhabited and thus more competitive, at least when it comes to free media exposition which was guaranteed for dogecoin when it was the singular element in that space. So, the price and its path will be mapped out by the ability of dogecoin to stay ahead of its new competition but somehow do it without any technical advancement or big institutional adoption.

Source: Forbes