The 2020 pandemic hit many companies hard, while other companies took it as a chance to grow, seemingly unaffected by the state of the world around them. NVIDIA (NASDAQ:NVDA) came out as one of those thriving businesses and achieved gains of 122% in 2020. The company’s graphics processing units (GPUs) were present and needed for trends that accelerated exponentially due to the pandemic, boost...
Dogecoin (CRYPTO:DOGE) is a trending cryptocurrency that had its origin as a meme. This digital coin is characterized by having an adorable dog symbol and has never claimed to be anything more than a meme cryptocurrency “favoured by Shiba Inus worldwide,” according to them.
However, trading volumes and current prices have increased in recent months, leaving some to believe that Dogecoin might become more than just a meme.
From Meme to Dream?
Okay, so while it is definitely not a strong alternative for investment like other serious digital coin platforms like Bitcoin (CRYPTO:BTC), its recent surge and friendly image might jumpstart something unexpected.
Dogecoin’s approachable symbol and branding designed by Billy Markus and Jackson Palmer wanted to lead into the humour and graphic appeal of the doge meme, seeking a broader market than Bitcoin.
Tesla (NASDAQ:TSLA) CEO Elon Musk promoted the currency through his Twitter during February with tweets such as “No highs, no lows, only Doge” and “Who let the Doge out.”
Doge’s low prices also play into the joke. Its prices were a meagre $0.01 per token in 2017-2018 when the crypto boom took place. It currently trades at $0.23. Not a significant amount by any means.
However, its $40 billion dollar market cap is comparable to Ford, and its last 24-hour trading volume of $22 billion surpasses Apple’s $13 billion daily trading volume.
Retailers are testing the waters with Dogecoin, accepting DOGE payments for security services and Tesla cars. Ever since BitPay began processing payments with DOGE in March, the Mavericks have been receiving and managing Dogecoin for their game tickets.
Will this mean the rise of Dogecoin? Probably not.
However, the backing by the Reddit community WallStreetBets has made other meme stocks flourish, and Elon Musk’s half-joking stance on the matter might influence its positioning.
Take GameStop as a prime example. While investors didn’t look at it as more than a meme stock, GameStop’s position was stabilized by those same factors and might recover in the future.
Will the same happen to Dogecoin? Only time will tell.
We recommend saving your Dogecoin moves as the meme either dies out or continues to joke around to the point of being a serious investment. Keep it on the radar for fun, if anything else.