Dogecoin (DOGE) is, according to the official website, a decentralized and “open source peer-to-peer digital currency”.
Although the token originally had no real life implementations, over time Dogecoin (DOGE) has become something of a success story. Currently, it maintains a respectable position within CoinMarketCap’s top 100 token rankings by overall market cap – at 31st place.
It started as something of a joke, but in spite of these humble origins DOGE has become a viable option for investment within the world of digital assets – with DOGE to USD (USD Dollar) being the most common fiat-crypto trading pair available for the token.
How and why did this happen, what has influenced the value of DOGE, and is it a good time to invest?
What is Dogecoin?
A currency calculation / conversion as of June 1, 2020 (21:17) for DOGE to USD reveals the exchange rate, that one Dogecoin is worth ‘$0.002583 USD’.
Dogecoin (DOGE) is, according to the official website, is a decentralized and “open source peer-to-peer digital currency”. It was forked from Litecoin and offers an alternative form of decentralized payments.
DOGE was created by Jackson Palmer and Shibetoshi Nakamoto (AKA Billy Markus) on December 6, 2013 and originally had been most commonly labelled as a ‘joke cryptocurrency’ (its two founders included). Shibetoshi Nakamoto is a portmanteau between Satoshi Nakamoto (pseudonym for the creator/s of Bitcoin), and Shiba Inu (the breed of dog represented in the coin’s namesake meme).
Jackson Palmer is a marketer at Adobe and Australian entrepreneur who (apparently) holds under $50 worth of DOGE, and backed away from crypto in 2015. Billy Markus is a software developer at IBM. In a 2013 interview, the two founders claimed that “The price doesn’t even matter”.
DOGE to USD
Whether or not the price “matter[s]”, the token has seen two large leaps in price. Overall: despite jumps and dips in performance / numbers, market cap and token value for Dogecoin have increased over time.
As of the morning of June 1st, 2020, Dogecoin’s performance metrics are as follows:
- Market Cap: $322,586,814 (June 1st, 2020 – 8:37AM)
- 24hr Volume: $196,922,988 (June 1st, 2020 – 8:37AM)
- Token value: $0.002585 (June 1st, 2020 – 8:43AM)
As previously mentioned, DOGE was never expected to become a top ranking token amongst a sea of altcoins in the market, instead originally being intended as something of a joke (and proof of personal achievement).
December 19, 2013 (13 days after the token’s launch): the value of Doge jumped around 300% from over a period of 72 hours, following its first exchange listing. It subsequently crashed, which was blamed on mining pools seizing the opportunity to take advantage of inflated value combined with relative ease of mining due to lower competition compared to other blockchains.
The crash coincided with the aftermath period, following a large scale theft of DOGE tokens after Dogewallet was hacked on December 25, 2013.
There has been a series of sharp rises and falls from Dogecoin over the years, most prominently between 2017 and 2018, when the cryptocurrency market saw its most significant boom and subsequent bust. Despite this volatility, overall the token has appreciated as a result of each of these instances.
For example: over the course of six weeks – between April 12, 2017 and May 24, 2017 – the token value of Dogecoin increased by $0.00347 (+838.16%) and the market cap by $380,258,771 (+844.18%). While ‘DOGE’ lost most of the value it had gained over this time by September of the same year – it still ended up with a greater valuation than before the jump.
Early / Mid March this year saw a massive dip in value for DOGE however it has been recovering steadily since. Despite recent short term appreciation enjoyed by tokens such as Bitcoin, DOGE has seen far lower traction – however it must be noted that it has weathered much of the bear market over the past few months.
Dogecoin’s ability to resist some of the more superficial value shifts that have affected many top market-cap tokens since March suggests that it is presently a less negatively volatile asset than many of its peers. A good indicator for those seeking to invest in long positions.