Dogecoin is Gaining Traction, But Will This Attention Span Last?

Dogecoin is Gaining Traction, But Will This Attention Span Last?

“Who names a crypto after a dog?” Well, Billy Markus and Jackson Palmer did. A token that was once created as a joke, is now soaring high with attention among netizens, including celebrities such as Snoop Dogg and Gene Simmons, and billionaire Elon Musk. While it was made for the fun of it, it grew to have a purpose as a more accepting and approachable cryptocurrency, second to Bitcoin. The community supporting Dogecoin is what makes the value of itself so valuable.

After its major fluctuation over the years, both partners did not expect the coin to grow this big, with a market capitalization of $6.819 Billion as of now. However, it remains substantially behind of Bitcoin as it just soared to $900 Billion for the first time in February 2021, making the market capitalization larger than many big banks in the United States.

One of its major spikes happened in July 2020, following a trend of Tiktok where traders aimed to reach $1 for Dogecoin. Nevertheless, after Dogecoin low times, the price has once again spike up over 800% in January 2021 because of its mentions from prominent people, and users of Reddit that was involved in pumping Dogecoin, like what happened with Gamestop in early 2021. This hype tends to make traders take into action by splurging their money into Dogecoin. However, there is a risk for Dogecoin to plunge as traders tend to engage in profit- taking, resulting in normal users losing money, rather than earning.

Source: Dogecoin’s price graph from Coindesk

If Dogecoin can reach a market value of $9.5 Billion, it can possibly fall in one of the 10th biggest cryptocurrency. If it reaches the 5 cents mark, we can likely see a run up that will be close to the newly set all time high and if it fails, it will fall between 2 to 3 cents range.

But because of how volatile cryptocurrency can be, its market directions can change in just a blink of an eye. With netizens voicing out mixed feelings, no one can predict the future of Dogecoin. Plus, Dogecoin hopping in the bandwagon can either be temporary or permanent.

Source: r/CryptoCurrency in Reddit