(Hint: It’s not related to Dogethereum)
- Dogecoin (DOGE) the only top 100 cryptocurrecy to post double digits returns on Thursday 30th August 2018.
- The token increased by 25% as investors reacted to the ‘Dogethereum’ news.
- Other factors such as continued community strength, early entry advantage and surprisingly the lack of concrete use of DOGE have contributed to growth of the token.
Doge is soaring, and fast at that too. The last 24 hours has seen over 25% increase in DOGE price to hit $0.003139 USD as at August 30th 2018 2.09 PM EAT. The coin that has mainly been termed a joke by most in the cryptocurrency communities continues to rise on the shock of many. In the last 24 hours, DOGE was the only currency in the top 100 list by market capitalization to post double digit returns above 20%.
This recent pump in price can be attributed to the ‘Dogethereum’ bridge being launched in what was seen as a big deal to the DOGE community. Notwithstanding, the coin has been added to a couple of exchanges in the past one month or so, with Robinhood cryptocurrency exchange icing the cake this July. However, it’s the overall community strength, first entry advantage and useless nature that has had the major impact in the survival and
Community strength helping DOGE survival
It’s harder to name one cryptocurrency community that has been as active across the internet than the Dogecoin community, DOGEfam. Despite many calls of the coin being a joke and lacking any value, the Dogefam keeps growing at a fast rate. The main Dogecoin subreddit community boasts of 121,891 certified wow shibes, named pafter the famous Shibe Japanese dog. The coin started off as a joke by Australian entrepreneur Jackson Palmer in 2013 when the crypto wave was starting out. However, the Dogefam turned the ‘joke’ to something valuable by sharing DOGE tokens as tips across social media platforms increasing the overall adoption.
However, as the price of the coin continued to rise, tipping using DOGE became gradually expensive and the practice faded as cryptocurrencies gained full blown status in late 2017. The community however haven’t stopped creating FOMO around the coin giving the price a much needed boost.
Early entry and a ‘lack of use’ pushing DOGE
The current position of DOGE [28th on Coinmarketcap] will come as a shock to any close cryptocurrency enthusiast in the field. Not in any way to disregard the strides taken by DOGE currency but one of the major reasons its market capitalization ranks so highly is the huge number of circulating tokens. The current 115,919,188,537 DOGE tokens in circulation place the project fifth in the most number of coins in circulation. However, it’s not the huge number of tokens that surprise many but the actual use of these tokens.
Creator of DOGE, Jackson Palmer on the recent Robinhood addition of DOGE
The coins started off as a tipping token but since people started HODLing, the coin has lost is use case in the world. In contrast however, the lack of a real use case has caused the investors to solely depend on the coin as an investment asset which withdraws the pressure associated with working products.
Having started earlier than most of its current competitors gives the DOGE token a competitive advantage as investors feel confident in the market of DOGE remaining stable for the foreseeable future. So how does the early entry and ‘uselessness’ of DOGE have to do with the rising price?
With the coin having survived for half a decade on the top 50 charts without a real use case will give an investor just as much faith in the survival of the coin as they would failure. However, for a token with such little usefulness, any positive news from the coin will push the price further up than it would on any other cryptocurrency hence the rally after the Dogethereum news.
All in all, with the founder totally skeptical of the token, claiming he doesn’t own any DOGE nor having gotten rich using DOGE, investors continue to be weary in investing in the coin. Nevertheless, DOGE does not seem to be going anywhere in the short term and surely the price targets a $1 valuation in the future.