Follow Us

With a $92 Billion Market Cap, Dogecoin Cannot Be Taken Lightly

Share on facebook
Share on twitter
Share on linkedin

Share

dogecoin
Share on facebook
Share on twitter
Share on linkedin
  • Dogecoin has a market cap of over $91B, with more than 129.5B DOGE tokens circulating at $0.71 each.
  • The Doge-dedicated community of millions is responsible for its major price rallies, triggering outages in platforms like Robinhood.
  • Despite being the 4th largest crypto by market cap, Dogecoin isn’t included in Bitwise’s Top 10 Crypto Index.

“It’s just a joke, don’t take it so seriously,” whoever came up with this, Dogecoin wants to know your location. Dogecoin, the trending meme cryptocurrency, which was just meant to be a joke, was soaring at above 69 cents on Wednesday. Considering how it entered 2021 at barely $0.005, not even a penny, $0.69 is an enormous leap to have achieved in just over four months.

Dogecoin

The world’s fourth-largest cryptocurrency with a market cap of over $91 billion, Dogecoin (DOGE) was created by software engineers Billy Markus and Jackson Palmer in 2013. Mocking the then-emerging numerous fraudulent crypto tokens, DOGE was supposedly a faster and “fun” alternative to Bitcoin (BTC). Unlike BTC, it doesn’t have a supply cap, so the recent bull rally is no inflation hedge. There are over 129.5 billion DOGE tokens in circulation at the time of writing, at $0.71 each. While the token is accepted at some handfuls of online retailers, it lacks the mainstream appeal of Bitcoin.

Doge-Dedicated Community

Yet what it lacks in institutional appeal, it makes up for in dedicated support. The meme-inspired altcoin, featuring the Shiba Inu dog from the “Doge” meme as its logo and namesake, has a big community of millions. This Doge-dedicated section of the population ignites DOGE trades to heights it triggers outages in platforms like Robinhood. The community also rallies around observances like Doge Day on April 20. Another major Doge-supporter, or rather “Dogefather,” is Elon Musk. Some even attribute gains to Musk’s series of Doge-dedicated tweets and his appearance on Saturday Night Live. 

Cryptocurrency: Internet’s Prodigy

Writing to Barron’s, Matt Hougan, chief investment officer at Bitwise Asset Management, said, “the social aspect of crypto is meaningful.” After all, it’s the internet’s first native money, so it’s natural for some of the internet’s “common features, including online communities, viral growth, etc.,” to be a “part of its story.” Online communities hold power to make or break markets. 

Digital assets might seem worthless to investors from before the internet and technology revolution age, poles apart from how those who grew up spending real money on in-game equipment view it. But even Hougan agrees Dogecoin symbolizes a “market excess.”

Dogecoin Is Overrated

Bitwise Asset Management, a leading crypto fund manager, has an index tracking the 10 most valuable crypto by market cap. And although Dogecoin is ranked 4th globally, it isn’t on the list. The reason, Bitwise screens out assets not fit for institutional investors, and there, Doge lacks in more ways than one. 

As Barron’s read, “Musk may be ready for late-night, but Dogecoin isn’t quite ready for prime time.”

Join The Coin Republic’s Telegram Channel for more information related to CRYPTOCURRENCY NEWS and predication.

Leave a Reply

Your email address will not be published. Required fields are marked *

Download our App for getting faster updates at your fingertips.

en_badge_web_generic.b07819ff-300x116-1

We Recommend

Top Rated Cryptocurrency Exchange

-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00