Dogecoin (DOGE) Strikes $0.69 Meme Price
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The factors that push Dogecoin (DOGE) upward are still in place – mainly the sheer energy of pumping an underdog digital coin. But DOGE is by no means an underdog, as it has become the fourth largest asset by market capitalization. DOGE is now facing predictions of a Coinbase brokerage listing, which would further expand its reach for retail investors.
On Wednesday, DOGE reached new all-time highs above $0.66, a formidable record for a coin where $0.01 was viewed as the peak price. DOGE rose by more than 54% in a single day, while also building support from a new batch of crypto buyers. Intra-day prices also touched $0.69, a meme price that has driven the market in the past weeks. DOGE did not manage to strike the price on April 20 as promised, but still rallied to that level.
Gemini Exchange Makes Crypto Mainstream
After years of staying away from DOGE, exchanges finally started listing the asset in the past few years. But the latest trading pair on the Gemini exchange is a different matter. Now, DOGE is available through a fully-vetted and legal US-based entity, which will add a fiat gateway to buy and sell the coin.
At $0.66, DOGE is even more intuitive as a low-priced, yet workable asset. The recent growth in popularity also led some traders to envision price levels of $1.
The infinite DOGE supply is also not considered a big problem in the case of mass adoption. Tyler Winklevoss, CEO of the Gemini exchange, believes new DOGE can be absorbed successfully.
“In Dogecoin’s case, its money supply is transparent, predictable, and disinflationary. The Dogecoin protocol issues a fixed amount of 5 billion DOGE every year. Over time, this fixed, annual issuance of 5 billion DOGE will represent a much smaller percentage of Dogecoin’s overall money supply,” he wrote.
DOGE Community Remains Strong
DOGE has always been a meme coin with limited usage as a long-term store of value. The asset’s rapid adoption and price growth are viewed with some skepticism by Bitcoin maximalists.
However, DOGE adoption may also be beneficial for crypto acceptance overall. The wide availability and a long-term community may accustom more new buyers to digital coins.
The asset’s climb has recovered from several dips, with more willingness to hold onto the coins for the longer term. Binance has been instrumental to the trading that led DOGE to peaks above $0.66.
The current DOGE trading profile shows that it is the Binance exchange spot market that leads the price discovery. The DOGE/USDT pair takes over more than 32% of all trades, with a smaller market on the Huobi Global exchange.
The DOGE rally is also self-enforcing, after the initial boost from the hype of Robinhood users, and a drive from WallStreetBet users to pump the coin additionally.
DOGE has been distributed for nearly a decade, with multiple users possibly finding old wallets that are significantly appreciated. The meme culture, however, may urge those owners to hold onto their coins instead of selling.
Spillover Trading Affects All Coins
The recent Ethereum (ETH) rally and the DOGE price hike are adding to the altcoin enthusiasm. Litecoin (LTC), the network which also mines DOGE in each LTC block, appreciated to a new yearly high above $335.
Ethereum Classic (ETC) extended its gains to $82, as it came into focus alongside ETH. Chainlink (LINK), one of the most used networks for oracle price information, also benefits from the hype. LINK is now on track to move above $50.
DOGE Transactions Grow Expensive
One of the value propositions for DOGE was that its transactions were virtually free. This allowed traders to move coins between exchanges when other networks were congested.
The recent interest in DOGE shows not only trading enthusiasm, but increased on-chain activity. The Dogecoin network saw more than 136,000 transactions per day in the past week, showing more coins are on the move.
This raised transaction fees to an all-time high of $1.80. This is still relatively low compared to other networks, but still an indicator of a rush to move DOGE. There are still thousands of addresses holding millions or billions of DOGE, with up to 30% of the supply concentrated on a single address, possibly belonging to an exchange.
Is Dogecoin Secure?
Dogecoin has used the same code since its launch in 2014. There are some concerns the network may not be secure. Initially, DOGE could be mined on personal computers. Later, its mining was conjoined with Litecoin’s network.
Litecoin has a significantly higher hashrate and is considered one of the more secure networks. Litecoin has more than 1,400 nodes, which also relay DOGE transactions, with most of the nodes in Europe and the USA.
Dogecoin is thus more secure in comparison to other low-priced coins with a different mining technology.
The biggest risk for DOGE is price volatility, as there is significant downside in case big-scale owners decide to sell off their coins more rapidly. DOGE has wiped out up to 50% of its price in corrections, and the $0.66-$0.67 levels may not be sustained.
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