Numerous investors choose to keep their crypto portfolios diversified to reduce the risk of losses when specific investments don’t generate the desired outcomes. As the saying goes, it’s best to put eggs in more baskets instead of keeping them in only one, ensuring that if the container drops, the possessor doesn’t suffer the loss of all. Simply put, you raise the likelihood of seeing returns. Hence, when it comes to crypto holdings, going for the biggest and oldest – Bitcoin and Ethereum – is a strategy that stands for perfection. How? By adding other cryptocurrencies to your portfolio.
There are more than 11 types of cryptos, including altcoins, stablecoins, security tokens, utility tokens, DeFi tokens, and so on. Among these, meme coins have risen to unmatched popularity during the last years, with the category’s architect – Dogecoin – leading the pack, as you can subtract from the live price of Dogecoin. Starting as mockery, as the name suggests, they’ve risen to turn into one of the hottest niches in cryptocurrency over the years. Leveraging just the right amount of publicity and community backup, they now boast a track record of millions of greenbacks in transition. By the time of writing, the meme coins’ market cap stands at a whopping $125BN. Noteworthy, A-listers like Elon Musk keep giving a plug to Dogecoin, which is just a small indicator that the asset’s not going to die anytime soon.
DOGE’s beginning is anything but humble
By now, the bulk of investors are aware that Dogecoin started as a joke to ridicule the crypto king, Bitcoin. Now, something happened since it broke into the market in 2013 and along the way, more exactly in March 2017, when its trading volume picked up steam. Dogecoin’s starting price of $0 needed a few days of trading to reach $0.0004 and two weeks to increase 300%, specifically after China banned crypto usage in banks. Moving forward, the asset began enjoying a rising support community in 2014 despite lacking something as usual as a whitepaper – let aside other use cases.
During those times, the coin was trendy in the crypto field’s underground niches. It was only after the launch of the DogeTipBot, a micro-tipping application that could allow users to tip content creators and other types of online service providers, that the token began witnessing rising adoption. Fast forward, Dogecoin made the channel of transfer of over $170,000 worth of assets to charity through its enthusiastic community. If you think that Dogecoin began riding the wave around that time, think again. This was when the asset dropped the most, sinking to $0.0000869 after the community became indifferent to it – though not for long. Between 2017 and 2019, the meme coin’s price would break record after record, paving the path for the entry of one of the most illustrious self-made tycoons of our age.
The world’s richest man stepped in and changed the game forever
The association of crypto with the most affluent individual can only benefit the former, as history has proven. Elon Musk made apparent that he endorsed Dogecoin at the beginning of 2022 through a tweet, following a $0.20 rise in price after the asset had won 5,859% over the previous year. The self-named “Dogefather” then kept showing his endorsement through a series of tweets that would portray Doge as “people’s crypto” or as the only crypto, only to see the tycoon exclaim that his posts were mere “jokes”, i.e., words thrown around.
Regardless of any statements made throughout time or media interpretations, the entrepreneur’s take on the Shiba Inu-themed meme coin remained as positive and supportive as ever. The tech guru split the Dogecoin era into a “before” and “after” era, as he did with the market as a whole. His takes and assertions about the Shiba coin via television and social media channels propelled the asset more than 400% in the first month of 2024 only, pushing it to a notable $0.32.
Moreover, when it comes to the broader crypto market, Tesla’s CEO has been just as influential. For instance, DOGE’s spike post-Elon Musk’s “adoption” laid the foundation for a wave of fresh dog-related coins to follow. A contribution like no other’s, the tycoon took it to the next level by announcing that he would join forces with DOGE devs to improve several coin characteristics, like the infrastructure’s efficiency and transactions’ speed. From this point on, DOGE seems to be set for
DOGE is set to take off
Everyone knows that DOGE emerged as a joke but turned into one of the fiercest players in the crypto market. The already strong community behind the Doggo coin is only getting stronger—Elon Musk’s endorsement transforms the asset into a power to be reckoned with. As expected, the hype around the crypto-only intensifies.
When it comes to growth, the asset’s price rose by 150% in the last month. Some market gurus state that the asset is on its way to mark a new ATH, in part encouraged by the price changes that have been only positive as of late. With an ATH at $0.73, hitting a presumed $1 per coin would mean the asset’s market cap rose to a value of $147BN – a far cry from its current $62BN. Nevertheless, considering that the whole market values $3.35TN and Bitcoin rules with a dominance of 61.39% of the whole market, it’s safe to say that Dogecoin’s number of rivals to overtake is scarce.
Reasons why you’d invest in Dogecoin
Dogecoin’s future is anything but bright. First, its block time of 1 minute overtakes the bulk of proof-of-work cryptos, positioning it high among vehicles for microtransactions. Second, Dogecoin surpasses the heavyweight Bitcoin regarding mining and energy consumption, meaning that its environmental mark is a goal for the ruler to establish and achieve.
The meme coin is making all the headlines as traders and analysts articulate their bullish feelings toward its performance and price. Dogecoin remains one of the most appealing cryptos for newcomers or skeptics who just want to test the waters without going big with high-ticket cryptos like Bitcoin.
Invest mindfully!
Despite its attractive price, it’s not too late to dip your toes into DOGE waters. Nevertheless, there are many recommendations to remember when you decide to invest in it, such as limiting yourself to an amount that won’t hurt your budget if the scenario doesn’t turn as expected. Play safe!
