Dogecoin Recap: Is 2021 Still The Year Of The Doge?
Dogecoin has definitely had an interesting year this year. The coin that everyone thought was down and out of the game, made a comeback to be one of the top-gaining coins of the current bull market cycle.
Sure, the DOGE price increase might have had something to do with Elon Musk’s activity on Twitter, but overall Dogecoin has had an outstanding run nevertheless.
The price movements of the coin remained minimal for the better part of three years, trading at under a cent. To many, it was game over for DOGE. There were barely any talks about Dogecoin in the market at all. With people focusing their attention on better-known coins like Bitcoin and Ethereum. Until billionaire Elon Musk turned his attention on DOGE.
The Story Of Dogecoin’s Rise
In January 2021, a tweet from Musk that simply said ‘Doge’ went viral. Just few minutes later, the price of the Dogecoin had gone up. With the rapid price increase, FOMO (fear of missing out) drove investors into the market.
While price was skyrocketing, there were speculations that the whole thing was simply a pump and dump scheme that would burst as soon as it started. But the price just kept going up, indicating that it wasn’t just a pump and dump.
With every tweet about Doge from Musk, the coin price just kept soaring. People faithfully followed the billionaire’s tweeting patterns to buy and sell the coin. In no time, a coin that was trading at less than a cent a couple of days before was trading at $0.68. More than 10,000% or 100x gains from its low.
Debates were started that Elon Musk was shilling the market. But it didn’t seem that he had broken any laws.
This gave the rise to meme coins. An ode to meme stocks. A phenomenon that started with GameStop on Reddit.
Investments in meme coins are made based on the social media buzz behind that coin. And what better buzz than the one created by one of the richest men on the planet.
Dogecoin Fall And Recovery
Over the past five months, Dogecoin has had its ups and downs. Mostly following the price of bitcoin as altcoins are wont to do. But it is no secret that the buzz has started to die down.
With a lot of investors buying at the top or near the top, the subsequent crash has left a lot of investors in losses. The “Dogefather,” as Musk is fondly called, seems to have abandoned the coin.
There has not been a tweet from Musk regarding DOGE since April. And without him, the coin has been in a continuous downtrend. Investors in the coin have suffered massive losses in the market.
People are calling for the “Dogefather” to help save the coin. But it would seem help is not forthcoming.
Dogecoin crashed to $0.16; A price point the coin had not been in since April. But the DOGE made a great recovery. Going up 40% in one day. A lot of Doge enthusiasts are still holding out hope that coin will replicate the massive run in January.
Despite people believing the bubble would burst on DOGE and it would come crashing down, the coin has held its own in the market. Currently trading at $0.28 as at the time of writing.
#PayMeInDogecoin is trending on Twitter at the moment with the intent of bringing the coin up again.
