The original memecoin, Dogecoin, brought cryptocurrency into the media spotlight. His rise in popularity is nothing short of historic. Here’s where it came from and why everyone can’t stop talking about it.
Dogecoin’s journey since its inception has likely changed the world of money as we know it forever. Cryptocurrencies were gaining traction in the years before Dogecoin’s fame. But when Dogecoin hit everyone’s social media, discussions about cryptocurrencies became commonplace. And that was exactly the goal of Dogecoin founders Billy Markus and Jackson Palmer.
Dogecoin was created in the hope of making cryptocurrencies more accessible. Markus and Palmer believed that Bitcoin was obscure and difficult to use. They wanted to design a peer-to-peer currency that was shrouded in less mystery and not associated with dark web crime. To help gain notoriety, the 2013 shiba inu “doge” meme that circulated the internet was chosen as a logo to help gain notoriety with a wider audience.
One small step for man, one giant leap for Doge
Dogecoin has similarities to many other cryptocurrencies despite its memecoin status. It is safe and immutable. It uses a proof-of-work consensus mechanism. Dogecoin can be bought and sold on many exchanges just like other cryptocurrencies. It can even be used as payment for services and products. But it was a while before this status as the first memecoin to gain worldwide attention was achieved.
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Since 2013, Dogecoin has intermittently gained momentum and attention. During the second half of 2020, Dogecoin started trending on social media sites. At the time it was worth only $0.003. People started buying Dogecoin hoping to drive the price up. Well it worked.
Dogecoin catapulted into the mainstream media in 2021. In mid-January, Dogecoin caught the attention of a group of prominent celebrities and entrepreneurs. Most famously, Elon Musk endorsed Dogecoin on Twitter several times between 2020 and 2021. Thanks to the widespread attention, in February 2021 it reached a price of $0.08, an increase of 2,500%.
After a slight pause, the ascension continued until April when one of the most widely used cryptocurrency exchanges, Coinbase, listed Dogecoin. This listing propelled Dogecoin to a new all-time high of $0.41. At one point during this rally, Dogecoin was the fifth largest cryptocurrency by market cap. Even the widely used stock and cryptocurrency exchange Robinhood experienced an outage due to the massive amount of traffic from people trading Dogecoin.
The culmination of the Dogecoin hysteria reached its peak when Elon Musk introduced saturday night live in the first week of May 2021. In the run-up to its appearance, Dogecoin shot up to $0.72. From December 2020 to its peak in May 2021, Dogecoin rose by nearly 24,000%.
Dogecoin is still relevant
Dogecoin may not have run out of power yet. Musk announced in late 2021 that Tesla would begin accepting memecoin as an official form of payment for certain products. And he is not alone. Movie theater company AMC announced in April 2022 that moviegoers can now buy tickets with Dogecoin. The number one live streaming platform, Twitch, allows users to pay in Dogecoin. In April 2022, news of Musk making a purchase offer Twitter put the coin back on center stage when rumors circulated about Dogecoin payment integration on the social media platform.
The future of Dogecoin remains controversial and up in the air. There are advocates who argue that it is a legitimate form of currency. Some believe that it is a complete joke and has no intrinsic value.
Considering he remains the center of attention and is the personal favorite of one of the world’s richest men, don’t be surprised if he stays. Stranger things have happened because of the Internet. Only time will tell if Dogecoin is here to stay or if he fades away as a one-hit wonder.
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