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Dogecoin is an open-source, peer-to-peer digital currency, just like Bitcoin, Ethereum or Shiba Inu. Dogecoin was launched by Billy Marcus and Jackson Palmer on December 6th, 2013, as a ‘fun and friendly internet currency’. There was wild speculation in the crypto world around the time Dogecoin was launched, and the founders literally wanted to make fun of that situation.
This is why Dogecoin was branded using a popular meme at the time – a Shiba Inu dog that was misspelt as ‘doge’. As a literal joke cryptocurrency, Dogecoin did not have any defined use case and was just meant to poke fun at Bitcoin and the crypto world. And interestingly enough, the joke spread like wildfire.
Within just 72 hours of its launch, the price of Dogecoin had surged over 300%. Doge had successfully introduced itself, and since then, it has continually cemented its roots in crypto land. A few days after the initial spike, doge prices tumbled over 80%. A hacking event followed shortly after this that made Dogecoin the most talked about cryptocurrency on social media. As a result of that event, the crypto community rallied itself, forming an initiative that saw all victims of the hack reimbursed all their stolen coins. Over the years, Dogecoin has emerged as the ‘people’s cryptocurrency’, with its price driven by mania.
Dogecoin prices have always been volatile, with massive price advances making way for massive price drops every so often. Its popularity has also seen it adopted for various use cases, such as tipping and merchant payments. Various celebrities, such as Mark Cuban and Snoop Dog, have publicly endorsed the coin and have added to its frenzy.
But the biggest public support has come from Elon Musk. A revered tech entrepreneur, Elon Musk has posted numerous tweets and given random speeches showing support for Dogecoin as the ‘people’s cryptocurrency’. Elon Musk is a cult hero in the tech space, and his ‘endorsements’ have always triggered a buying frenzy of Dogecoin.
Dogecoin is no longer a joke in 2021. It has maintained an active community, and its price has surged over 5000% this year alone. Dogecoin has now been a permanent mainstay in the top 10 cryptocurrencies by market capitalisation as of August 2021.
AvaTrade offers CFD trading on various cryptocurrencies, including Dogecoin. Here is why you should consider trading Doge CFDs:
Dogecoin has grown to become a unique cryptocurrency driven by hype rather than fundamentals. To be fair, its fundamentals are not that attractive. There are over 130 billion coins in circulation currently, with over 5 billion entering the supply every year. There is no lifetime supply cap, which inherently makes it difficult for investors to anticipate massive Dogecoin price gains in the future. Nonetheless, Dogecoin has maintained a market cap of around $40 billion as of August 2021, which has placed it in the top 10 cryptocurrencies by that metric.
The high pace of supply means that its price is not expected to rally much in both the medium and long term. Even hardcore enthusiasts do not fancy any meaningful gains above the much anticipated $1-price. The inflationary qualities of Dogecoin also mean that it may have a future as a potential stable coin, serving as a bridge currency between the various crypto coins and tokens.
But Dogecoin has so far proven to be averse to fundamentals. The coin has rallied in the past after trending on social media or being talked about by celebrities such as Elon Musk. This means that doge is literally able to bark much above its actual bite. It is therefore vital to track its hype on important social media communities on channels, such as Twitter and Reddit, so as to catch on potential trends.
Dogecoin CFDs offer a wealth of trading opportunities in both rising and falling prices. Here is why you should consider trading Dogecoin CFDs with AvaTrade:
Start trading Dogecoin with AvaTrade.