Dogecoin broke the market rules! It gained more than 14.000% in one year! What exactly was behind the scenes of the unstoppable ascension? Will this cryptocurrency that everyone has been talking about lately going up again?
Why is Dogecoin not keeping up with market rules? Here are the DOGE facts and behind the scenes of the rise!
Dogecoin (DOGE), once again in April, hit the crypto agenda like a bombshell! Everyone’s been talking about it. Namely; On the first day of April, it was trading in the range of $0.05.
On April 1, Tesla CEO Elon Musk once again tweeted about crypto money.. “SpaceX will send a real Dogecoin to the real moon,” he tweeted.. Although the tweet was intended as an April Fools’ joke, the DOGE price set for an unprecedented rally.
In two hours, the price rose more than 35% to $0.07. Although it pulled back a bit afterwards, it largely kept its gains.
The next increase in price took place on April 14, and the token’s value doubled to break $0.10 in just one day.. This caused Musk to turn his attention back to Dogecoin.. Meanwhile, Spanish painter Joan Miró shared a famous painting on Twitter, saying, “Doge is calling out to the moon.”. This tweet, along with the rising sentiment on social media, raised the price to $0.45 on April 16.
Was there only such tweets and social media sentiment behind the rise of DOGE price? ? What made DOGE so popular?
Kristin Boggiano, president and co-founder of digital asset exchange CrossTower, explains the reasons behind the rise:
- Listing on Coinbase It has generated interest and excitement towards crypto in general.
- The popular Reddit forum “r/Wallstreetbets” has changed its community guidelines for a day to allow crypto discussions, including DOGE.
Price increase pushes Dogecoin to top five in market capitalization. Moreover, the market cap of crypto has exceeded $ 50 billion. Indeed, this was a high figure for such money, which was intended as a joke.. However, after the correction that came shortly after, the market value decreased along with the price.
(At the time of preparing our article for publication, it was 7th in the top 10 with a market value of 30 billion dollars.. ranks. Price is currently correcting around $0.23.)
Eric Berman, financial law editor of Thomson Reuters, commented on the excessive demand for Dogecoin:
“The sentiment looks like this: Bitcoin is for the rich, Ethereum is for the middle class, and Dogecoin is for the common people.”
“Doge’s Day” has created historic enthusiasm!
Dogecoin fans declared April 20 as Doge Day, increasing the price of the coin to $0.420. For a short time, it seems the community has banded together to push the price of DOGE to an all-time high.
Joshua Frank, co-founder and CEO of social media analytics platform The TIE explained that media sentiment is still strong:
“Long-term sentiment for DOGE is outside the standard deviation. Meanwhile, when Redditors from r/SatoshiStreetBets took action to pump Dogecoin like GameStop shares, the record-breaking sentiment score was recorded as 139 (on January 28, 2021).. Sensitivity is now at 72 and still going strong. Tweets from Elon Musk about Dogecoin on April 14 also helped increase. “
While it is surprising that a project based on humorous memories such as Dogecoin is worth over $50 billion, the cryptocurrency released in 2013 is actually one of the oldest coins in the crypto world.. Also, the fact that the market value is so high for such a coin is proof of its strong community.
Meanwhile, its listing on exchanges such as Binance and OKEx increased its liquidity and made it more popular among the community.
Meanwhile, OKCoin gave a good news on Doge’s Day and the exchange’s token was released at the end of April. announced that it will list. Jason Lau, CEO of OKCoin, said about DOGE:
“DOGE is a very affordable coin for payments. Extremely fast and effective. Transactions cost less than a cent. Although it has fewer nodes than others, it is secured with proof of work and hasn’t had any security issues so far.. “
DOGE has real usage area
Most of the users use Dogecoin for real transactions and with this feature it differs from cryptos that have no use other than stock market transactions.. At the same time, with an active network, Dogecoin is one of the cryptocurrencies with the highest daily trading volume.. Which already had an incredible volume of trading during the last pump.
DOGE is currently the famous investor.. The club reported on Twitter that product sales have increased by 550% since it announced that it would accept Dogecoin as a payment method.. In addition, the sports team stated that it will not sell the DOGEs from the sales and will hodl in the long term.
However, this increase in adoption has not reached a sustainable level yet.. Lau also said of crypto:
“It’s also worth noting that the Dogecoin codebase has not been updated and actively maintained in years.”
Also, according to Boggiano, some traders are turning the fact that Dogecoin was created as a joke into a fun experiment tool, almost a gambling game.. And so DOGE is used as a competitive tool.
“The crypto community wanted to continue this story that started out as a joke.. We know DOGE was created as a joke for the crypto community.. Created to make fun of Bitcoin. However, Bitcoin has proven itself as a legitimate asset class. So this could be a way to redefine the essence of cryptocurrencies in general.. “
Can DOGE be a pump and dump tool once again?
Dogecoin has been used as a pump and dump tool many times in the past.. But was that all there was?. This means that 5 billion new tokens enter circulation every year.. There will always be downward pressure on the token, mainly due to the high and ever-increasing supply.
As we all know, during the previous market crash, almost all cryptos crashed along with Bitcoin; Doge had an incredible rise. On recent events at Doge, Frank made an interesting point.
The last rally was controlled by a single person who had amassed at least “$1.3 billion worth of Dogecoins and manipulated the futures market by placing short orders.” stated that it was. Here, the whale’s intent was to create a negative funding cycle that led to the explosion of derivatives in liquidations exceeding $760 million. raised the price. And apparently, this major player liquidated their spot assets, creating over $760 million in liquidation in the derivatives market.
Berman, on the other hand, approaches the situation from a different perspective:
“The Dogecoin incident is somewhat similar to the Reddit/GameStop incident a few weeks ago. The rise in popularity in recent days is partly attributed to Coinbase’s IPO. Whereas most cryptos should have made a similar leap, it did not.[…] People who felt like they missed out on opportunities in Bitcoin, perhaps thought it was a chance for them.. “
Although the price of Dogecoin has been keeping pace with the major market correction this time around, it seems that the token has found a use beyond its prank coin status and is now seeing real growth in the cryptocurrency ecosystem.
As a matter of fact, its market value at the time of its peak surpassed even long-running multinationals such as Barclays and Ford.. Speaking about Dogecoin’s sustainability, Lau also said:
“I can never underestimate DOGE’s strength in the market.. For many, it may be the first crypto they have or hear about.. Now it’s one of the few tokens to penetrate even beyond the crypto community.. “
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