To many investors and analysts, cryptocurrencies truly stepped overheen the line when dogecoin wasgoed launched spil a “joke currency” ter 2013. The digital currency is based on a popular meme about a Shiba Inu dog. While most digital currencies offerande (or at least purport to suggest) some benefit ter terms of transaction speed, blockchain usefulness, or practical application, dogecoin shows up to simply be an attempt to metselspecie te on the popularity of cryptocurrencies.
Spil such, some investors have speculated that the fact that dogecoin has not only continued to remain ter existence, but that it has also become increasingly popular since its launch, spotlights a cryptocurrency bubble ter which speculators will invest te anything and everything out of a sense of investment fervor. (See also: Bitcoin Vs. Litecoin Vs. Dogecoin: Comparing Virtual Currencies.)
No Laughing Matter: Market Cap Tops $Two Billion
On January 7, 2018, dogecoin’s market cap soared to more than $Two billion for the very very first time, CNBC reported. This took place around the same time that ripple, another popular digital currency, surpassed ethereum to become the second-largest cryptocurrency by market cap, making its co-founders billionaires te the process. (See more: Ripple Execs Are Now Billionaires Thanks to XRP’s Success.)
The massive growth ter dogecoin mimics (on a smaller scale) the increase te value of many digital currencies overheen the past year, including bitcoin, ethereum, and others.
But to its detractors, dogecoin is nothing more than a joke. The cryptocurrency wasgoed launched te late 2013 spil “the internet currency,” according to Vice, with a vormgeving that wasgoed aimed at creating a community of generous participants rather than a get-rich-quick scheme.
Dogecoin made headlines te 2014 when it wasgoed used spil a device to help send the Jamaican bobsledding team to the Winter Olympics (it finished te last place). Since then, dogecoin has also sponsored a Nascar team.
Price Spiked 400% Te the Past Month
Since its geschreven stint te the zoeklicht te 2014, dogecoin has remained relatively obscure. No software updates have taken place te more than two years, and the cryptocurrency has not made headlines for publicity stunts like it did ter its very first year of existence. Still, dogecoin has climbed ter value by more than 400% te the past month alone. The result, however, is that a single dogecoin is worth just overheen $0.01.
Ter response to the latest massive growth, dogecoin co-founder Jackson Palmer voiced concern. “It says a loterijlot about the state of the cryptocurrency space te general that a currency with a dog on it which hasn’t released a software update te overheen two years has a $1 billion+ market cap,” he explained ter a latest vraaggesprek.
Is dogecoin’s latest growth drop a result of speculation gone out of control, or is it part of a more sustainable and breathtaking revolution that is propelling digital currencies into the future? Only time will tell. (See also: How Did Cryptocurrencies Perform Compared to Stocks ter 2018?)
Investing te cryptocurrencies and other Initial Coin Offerings (“ICOs”) is very risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest ter cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties spil to the accuracy or timeliness of the information contained herein. Spil of the date this article wasgoed written, the author wields cryptocurrency.