Dogecoin, the popular cryptocurrency meme, reached a new historical record on January 28 after a meteoric gain of 1,100%. Here is a summary of each time dogecoin fired at the moon.
Dogecoin is a cryptocurrency created by Australian businessman Jackson Palmer and software engineer Billy Markus in 2013. It was supposed to be a parody of the new alternative currencies, or “altcoins”, that were flooding the space at the time. The infamous Shibu Inu “doge” around which the project is centered was taken from a viral Internet meme that was particularly popular with early cryptography users.
Dogecoin has a history of experiencing sudden price movements that are mainly driven by its popularity as a funny dog-themed cryptocurrency. In the past, the challenges of TikTok and the endorsement of major celebrities have contributed to the price increase, and at other times, cryptocurrency is increasing for no reason.
1. Cryptography in 2017
Dogecoin’s first big bomb started around March 10, 2017, when a significant increase in retail investment started entering the crypto market for the first time, lifting all alternative currencies, or altcoins. Over the course of 70 days, the “joke” cryptocurrency increased more than 1,890% from $ 0.00021 to a peak of $ 0.0042 on May 21. This broke the previous record of $ 0.0021 and raised the market capitalization to over $ 423 million. Shortly thereafter, dogecoin plummeted 75% during a two-week market retraction that affected all cryptocurrencies.
2. Bitcoin costs $ 19,783, raises dogecoin
In November 2017, a significant buying momentum had returned to the crypto market, with huge trading volumes taking bitcoin to a height of $ 19,783. The global market capitalization of cryptography reached an impressive $ 830 billion mark and sent lower capitalization projects, such as parabolic dogecoin.
On January 7, 2018, dogecoin surpassed $ 0.02 – 380% above its previous high. Its market capitalization at this stage was US $ 1.6 billion. However, this lasted very little, and in eight days, the price fell more than 70% to $ 0.0047.
3. Recovery of crypto markets
On April 14, 2018, just before the entire market entered the “cryptographic winter” and reached the previous lows, the vast majority of crypto projects had a brief recovery. In three days, dogecoin increased 103%, from $ 0.0020 to $ 0.0041. For comparison, bitcoin was only able to guarantee a 40% increase in the same month.
By this time, dogecoin’s market capitalization had been reduced by more than half, from its historical maximum to $ 573 million.
4. Ethereum / Dogecoin bridge test
The first major dogecoin rally that had no correlation with the rest of the crypto market was in September 2018, when a system test of the Dogecoin / Ethereum bridge was completed.
The bridge was to be a new update that would allow interoperability between the two blockchains. The announcement rekindled community support for the project and the price of dogecoin increased 173% in 48 hours.
Later, however, it became clear that due to a drop in the price of ether – the main cryptocurrency of the Ethereum project – there was insufficient funding to continue to develop the bridge and the update was put on hold. Since then, there has been no mention of whether this bridge between Dogecoin and Ethereum will ever be continued.
5. WallStreetBets craze, Elon Musk’s tweet
On January 11, 2021, traditional financial markets were severely disrupted by a group of subreddits called WallStreetBets (also known as WSB). These amateur stockbrokers decided to unite against traditional financial institutions and to pump up a series of stocks in which major hedge funds were betting on declining value, such as GameStop, BlackBerry, AMC, Nokia and Bed Bath & Beyond.
On January 28, the WSB stock market craze spread to dogecoin and catalyzed the biggest crypto rally of the year so far. In less than two days, dogecoin soared to a new $ 0.087 record on the Binance exchange – representing a 1,100% gain. The rally was fueled in part by a series of tweets, including one by Elon Musk, the richest man in the world and an avid dogecoin fan.
Netflix’s “Tiger” King, Carole Baskin, also tweeted a video expressing its support for the dog-themed cryptocurrency.