What’s Happening with Dogecoin (DOGE)
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For Dogecoin (DOGE), a price of even one penny looked like the highest top it could reach. For years, the coin was used for tips on social media and as a meme coin. DOGE had another usage – a tool to send funds cheaply between exchanges and wallets. Now, DOGE is a top 10 coin on Coinmarketcap, and may take over the established asset order due to its extremely high supply of above 129B Dogecoins.
But now, DOGE is on another leg of expansion. The coin’s underlying features have not changed, it is still intended to have an infinite supply with no true scarcity. On Friday, April 16, the market peaked at $0.28, boosted by unprecedented social media hype. The trading possibly affected the Robinhood app, where DOGE was made recently available.
The recent DOGE rally is also related to hype from r/wallstreetbets, and there may be a concerted effort to pump the price.
DOGE trading volumes are now above $20B, after years of relatively low trading action. DOGE has been delisted or avoided by more serious exchanges, mostly due to its reputation as a meme coin.
Can DOGE Go to $1?
The most extreme predictions for DOGE is that this small coin created for fun could reach prices of $1. The increased interest in crypto is lifting all assets, but DOGE is especially prominent. The coin managed to command a price of a few cents for weeks. Its biggest boost were the cheeky endorsements by Elon Musk, tech king of Tesla, Inc.
This leads to predictions of a continued upward move, to an entirely new price range.
One of the big hurdles for DOGE is the still limited exchange listing. The coin was simply deemed too speculative and not serious enough, hence no plans for a Coinbase listing.
Binance remains the most active market for DOGE, where the asset has a USDT pair with high reliability and mid-range liquidity. This means DOGE can still slip dramatically and crash within minutes.
The Asian market boost for DOGE is a significant force, while much smaller markets are available on Binance.US and through the Kraken exchange in the EU.
Is DOGE Safe?
Dogecoin’s network is actually one of the largest. The reason for this is that DOGE is co-mined with Litecoin (LTC), using its own LHash mining algorithm. For each Litecoin block, additional DOGE is produced.
The Litecoin network is relatively secure from attacks, and has not suffered malicious mining throughout its history. Mining LTC still requires investment in specialized rigs, and it would cost close to $30,000 to mine the network fast enough to make an attack. For DOGE, this has been deemed unnecessary, due to the extremely low prices of the asset until recently.
Is DOGE a Good Investment?
Dogecoin is a project that continues to exist despite almost no innovation or plans to add features. DOGE does not participate in DeFi schemes, and there is no developer team to expand its use cases.
DOGE is easily available through Binance’s Trust Wallet, though it has not been added to Exodus yet. Buying DOGE is still relatively limited for worldwide buyers. It is possible that more fiat on-ramps could boost prices, but until then, DOGE remains a speculative coin.
DOGE is often used as an indicator of an altcoin season, and this time, it has gained record attention. Small-scale altcoins almost doubled their market cap dominance, from around 9% in January, to nearly 18% at the start of Q2, based on more active trading and renewed interest in older projects.
DOGE is also on track to repeat its peak in BTC terms, and may become a speculative asset to gain more satoshis.
DOGE is also extremely popular due to tipping, with more than 2.2M users holding $1 in DOGE right now. Even those “dust” amounts may add to the popularity of the asset. At this point, more than 28% of the total DOGE supply is concentrated in a single wallet, possibly an exchange. But there are thousands of mid-range “whales” holding DOGE worth between $100,000 and $1M.
What is DOGE Competitor Project, Shiba?
While DOGE itself is not involved in decentralized finance, a new project wants to capitalize on the meme potential of the Shiba Inu dog breed. The newly created SHIB token is still in the early stages after its launch, and gathers investors through social media hype.
At this point, the Shibaswap project is still a wild card. The SHIB token is actually based on Ethereum, and has a recently created Uniswap liquidity pool. The goal of SHIB is to build a large community, while aiming for a price of $0.01.
The project also wants to launch its native Shibaswap exchange at the end of the month. The goal of this project is to be a “DOGE Killer” and replace the old coin with a DeFi token. At this point, SHIB is even less liquid and much riskier in comparison to DOGE.
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