The original memecoin, Dogecoin, brought cryptocurrency into the spotlight of the mainstream media. Its rising popularity is nothing short of historic. Here’s where it comes from and why everyone can’t stop talking about it.
The Beginning of Doge
Dogecoin’s journey from its inception probably changed the world of money as we know it forever. Cryptocurrencies gained popularity in the years leading up to the fame of Dogecoin. But when Dogecoin hit everyone’s social media feed, discussions about cryptocurrencies became commonplace. And that was exactly the goal of Dogecoin founders Billy Markus and Jackson Palmer.
Dogecoin was created with 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 less mysterious and not associated with dark web crime. In order to gain fame, the 2013 shiba inu ‘doge’ meme circulating on the internet was chosen as the logo in order to gain exposure to a wider audience.
One small step for man, one giant leap for the Doge
Dogecoin shares similarities with many other cryptocurrencies despite its memecoin status. It is safe and immutable. It uses a proof of work consensus mechanism. Dogecoin, like other cryptocurrencies, can be bought and sold on many exchanges. It can even be used as payment for services and products. But it took a while to reach this status as the first memecoin to gain worldwide attention.
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Since 2013, Dogecoin has been gaining momentum and attention intermittently. In the second half of 2020, Dogecoin started trending on social media sites. At the time, it was only worth $0.003. People started buying Dogecoin in hopes of driving up the price. Well, it worked.
Dogecoin shot 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 multiple times on Twitter between 2020 and 2021. Thanks to widespread attention, it hit a price of $0.08 in February 2021, an increase of 2500%.
After a brief hiatus, the rise continued into April when one of the most widely used cryptocurrency exchanges, Coinbase, listed Dogecoin. This quote 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 capitalization. Even the widely used stock and cryptocurrency exchange Robinhood has been disrupted by massive volumes of traffic from people trading Dogecoin.
The height of the Dogecoin hysteria reached its peak when Elon Musk presented Saturday Night Live in the first week of May 2021. Leading up to its performance, Dogecoin rocketed to $0.72. From December 2020 to its peak in May 2021, Dogecoin rose nearly 24,000%.
Dogecoin remains relevant
Dogecoin may not be active yet. Musk announced at the end of 2021 that Tesla would start accepting the memecoin as an official payment method for certain products. And he’s not alone. Cinema 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. News in April 2022 that Musk is making a purchase offer Twitter put the currency back in the spotlight as rumors circulated about integrating Dogecoin payments on the social media platform.
The future of Dogecoin remains controversial and hanging in the air. There are proponents who claim that it is a legitimate form of currency. Some believe it is a complete joke and has no intrinsic value.
Since it’s still in the spotlight and a personal favorite of one of the world’s richest men, don’t be surprised if it sticks. Stranger things have happened because of the internet. Only time will tell if Dogecoin is here to stay or fade away as a one-hit wonder.